Delaware Approves Business Tax Decoupling to Avoid Revenue Loss

Delaware enacted legislation Wednesday to decouple the state from some federal business tax incentives after a debate over whether the move would drive businesses away from the small but corporate-friendly state.

The Democratic-controlled Senate voted 14-6, along party lines, to approve H.B. 255, which Gov. Matt Meyer (D) signed. The passage wrapped up a special session the governor called to address a potential $400 million budget shortfall stemming from provisions of the federal GOP tax law Congress passed in July.

Delaware is one of nearly two dozen states that automatically conform to changes in the federal tax ...