Legislation Introduce That Would Provide Tax Relief for Overtime Workers

Legislation has been introduced in the Delaware General Assembly that would provide tax relief to Delawareans who work overtime to support their families and communities. Senate Bill 299 – sponsored by Senator Bryant Richardson and Representative Bryan Shupe – would establish a Delaware personal income credit of up to $15,000 on overtime income earned under the Federal Fair Labor Standards Act for hours worked beyond 40 in a workweek. The measure has been assigned to the Senate Elections & Government Affairs Committee for consideration.

Additional information from the Senate Republican Caucus:

The credit would phase out for individuals earning more than $125,000 annually and joint filers earning more than $250,000, with the credit fully phased out at higher income thresholds.

The legislation is designed to benefit working Delawareans across a wide range of professions, including healthcare workers, first responders, tradesmen, manufacturing employees, transportation workers, and others who regularly work extra hours to meet the demands of their jobs.

“Too many hardworking Delawareans are struggling with rising costs while sacrificing additional time away from their families through overtime work,” said Senator Richardson. “This legislation recognizes men and women who are willing to put in those extra hours to keep our economy moving and provide for their households. If someone is working beyond a standard workweek, they deserve to keep more of what they earn.”

State Representative Bryan Shupe, the House sponsor of SB 299, said the measure is intended to provide direct relief to hardworking Delawareans while encouraging workforce participation.

“This legislation puts more money in the pockets of the people who work the hourly jobs that keep our society running — nurses pulling double shifts, factory workers staying late, and every hourly wage-earner sacrificing time with family to bring home a few extra dollars,” Rep. Shupe said. “By creating a state tax credit for overtime earnings, we’re recognizing that hard work should be rewarded, not penalized.”