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The Senate will reconvene in extraordinary session on Wednesday, November 19 at 2:30 p.m. to consider House Bill 255.
HB 255 would "decouple" Delaware from certain provisions of the federal tax code implemented via the federal HR 1 measure that would allow businesses to retroactively write off certain business expenses, such as research and development costs. Governor Meyer's administration cites their projection of a $410 million loss in revenue over the current and next two fiscal years as the reason for decoupling.
However, the legislation has faced steep opposition from outside groups and individuals including the Delaware and New Castle County Chambers of Commerce, Delaware Business Roundtable, Delaware Society of CPAs, and public officials such as former Democrat Representative and JFC Chair Quinn Johnson.
According to a CNBC report, Delaware ranks 43rd in the U.S. for business friendliness.
During extraordinary session on Thursday, House Republicans noted HB 255 would disincentivize innovation and business growth, adding to an already cloudy economic situation Delaware finds itself in. By allowing the tax provisions associated with HR 1 to remain in effect, business owners would be better able to reinvest in their businesses, hire more employees, and generate more revenue for the state's economy.
More information about the legislation can be found here.
Prior to session, the Special Property Reassessment Committee will meet at 9:30 a.m. followed by the Senate Executive Committee at 1:00 p.m.
More info and livestream links can be found at legis.delaware.gov.
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