Bills for Tax Breaks on Overtime Pay and Tips Killed by House and Senate Democrats

August 15, 2026

State of Delaware, House Republican Caucus

A CONTINUING OPINION FEATURE LOOKING AT BILLS SUPPORTED BY HOUSE REPUBLICANS DURING THE 153RD GENERAL ASSEMBLY THAT DID NOT BECOME LAW...BUT PROBABLY SHOULD HAVE.

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.