Two bills introduced at Legislative Hall aim to support working Delawareans by increasing access to affordable childcare and providing tax relief for overtime work, according to a May 15 statement.
The proposed legislation seeks to address economic challenges faced by families in the state. One bill would expand eligibility for state childcare subsidies, while another would offer a personal income tax credit for those working overtime.
House Bill 387, sponsored by State Representatives Jeff Hilovsky (R-Long Neck, Oak Orchard) and Melanie Ross Levin (D-Tallleyville), proposes raising the income cap for Purchase of Care childcare subsidies from 200% to 275% of the federal poverty level over several years. The current cap requires a family of four to have an income below $66,000 to qualify. The law would expire after five years unless extended by the General Assembly. “In Delaware, infant care costs an average of $15,607 a year,” said Hilovsky during testimony before the House Health & Human Development Committee. “Regulatory barriers continue to limit the number of [childcare] providers who can even open their doors or expand, and our purchase of care program is frozen at 200% of the federal poverty level. The combined effect of these facts leaves working families ineligible for help, not because they are comfortable, but because they earn one dollar too many.”
Hilovsky also said that Delaware’s labor force participation rate was recently reported as the lowest in the mid-Atlantic region: “Currently, Delaware’s labor force participation rate is 59.4% as of late 2025. That is the lowest in the mid-Atlantic and nearly four full points below the national average. In its 2025 annual economic report, our Department of Labor confirmed that the state’s participation rate was the lowest since record-keeping began in 1976. That’s not just a statistic; that is the reality of a working parent who left the workforce because they couldn’t make the math work for childcare.” He pointed out examples from other states: “When parents can count on reliable childcare, they show up, they stay…and businesses grow. This is a family security bill, a jobs bill, and an economic development bill.” The measure has been released from committee but does not yet have an estimated cost.
A second proposal under review is Senate Bill 299—sponsored by Senator Bryant Richardson (R-Seaford) and Representative Bryan Shupe (R-Milford South/Ellendale)—which would create an income tax credit up to $15,000 for overtime earnings among workers earning less than $125,000 individually or $250,000 jointly per year; it phases out above those thresholds.
“Too many hardworking Delawareans are struggling with rising costs while sacrificing additional time away from their families through overtime work,” said 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.” Shupe added: “By creating a state tax credit for overtime earnings we’re recognizing that hard work should be rewarded—not penalized.”
Both bills await further action pending completion of fiscal notes.
