One of Gov. John Carney’s key 2024 budget initiatives — increasing the standard deduction and the earned income tax credit — was introduced in the House of Representatives on March 20. House Bill 89, sponsored by Rep. Paul Baumbach, D-Newark, would provide a 75% increase to the standard deduction, amounting to $5,700 for individuals and $11,400 for joint filers. The increase would go into effect in 2024. Additionally, the legislation would increase the state’s refundable earned income tax credit to 7.5% of the federal rate for tax year 2023, up from 4.5%. To account for these increases, HB 89 would also adjust personal income tax thresholds.
