A continuing feature: Looking at bills supported by House Republicans during the 153rd General Assembly that did not become law…but probably should have
Bills for Tax Breaks on Overtime Pay and Tips Killed by House and Senate Democrats
Two bills aimed at helping modest-income workers died in the legislative pipeline this session after Democratic lawmakers refused to allow them to receive a vote.
Tax Break on Overtime Pay
Sponsored by State Sen. Bryant Richardson (R-Seaford) and State Rep. Bryan Shupe (R-Milford South, Ellendale), Senate Bill 299 sought to provide tax relief to Delawareans who work overtime to support their families and communities.
The proposal would have created a Delaware personal income tax credit of up to $15,000 annually on overtime pay. The credit would have been phased out for high-income earners, with reductions starting with individuals earning more than $125,000 annually.
“This legislation would have put 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. “Hard work should be rewarded, not penalized. This bill would have done that.”
No House or Senate Democrat sponsored or co-sponsored SB 299. It died in the Senate Elections & Government Affairs Committee without having received a hearing.
Tax Break on Tips
Sponsored by State Rep. Jeff Hilovsky (R-Long Neck, Oak Orchard), the Tipped Worker Tax Relief Act of 2026 would have provided targeted state income tax relief for people in occupations where tips provided a significant portion of their total compensation.
Under the measure, service industry workers would have been able to deduct up to $15,000 of tipped income from their taxable yearly earnings. The deduction would have been gradually phased out for workers with an annual income exceeding $75,000.
Although the bill had limited bipartisan support and was released from the House Revenue & Finance Committee, it died on the House Ready List after the chamber’s Democratic leadership did not move it to a House Agenda for a vote.
