HB 65 waives state income taxes on unemployment benefits for 2020

WILMINGTON, Del. – Governor John Carney on Monday signed House Bill 65, which provides unemployment tax relief for Delawareans and businesses affected by the COVID-19 crisis. The legislation – sponsored by Representative Ed Osienski and Senator Jack Walsh – waives 2020 state income tax on unemployment benefits collected by Delawareans who lost a job or income over the course of the year.

Click here to watch the virtual bill signing.

Click here for important information for tax filers taking the 2020 unemployment benefit exemption.  

“This past year, we significantly expanded unemployment benefits to support Delawareans and businesses most affected by the COVID-19 crisis. We shouldn’t then turn around and tax them on that income,” said Governor Carney. “Thank you to Representative Osienski, Senator Walsh and all members of the General Assembly for helping make this legislation a priority.”

“Thousands of hard-working Delawareans have lost their jobs during the past year through no fault of their own, putting them in a difficult position at one of the worst times possible. We owe it to those impacted by the pandemic to take whatever action we can to ease their burden,” said Representative Ed Osienski, D-Brookside, the lead sponsor of the bill. “Exempting the unemployment benefits that have been a lifeline to so many families will mean that they aren’t blindsided when they file their state taxes this year, keeping a little more money in their pockets. We’re also taking steps to protect businesses so they aren’t penalized with higher taxes during the pandemic, which hopefully will help them keep their doors open.”

“Taxes are quickly coming due for thousands of Delawareans who have made less, had fewer opportunities, and been put out of work by the pandemic,” said Senator Jack Walsh, D-Stanton, the lead Senate sponsor of the bill. “In a tax year defined by unemployment and shuttered businesses, it’s on all of us in state government to extend relief that is straightforward, effective, and gets where it needs to go on time. This bill does that, both for our small businesses and for the tens of thousands of workers who filed for unemployment last year. I am proud to have worked on this legislation and I thank the Governor for signing it in time to do the most good.”

Watch the virtual bill signing on Facebook, YouTube, and Livestream.

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Fund to help offset specific expenses directly related to COVID-19 response

WILMINGTON, Del. — Governor John Carney on Tuesday announced a $45 million Higher Education Relief Fund, which will assist Delaware colleges and universities affected by COVID-19.

“This COVID-19 pandemic has impacted nearly everyone, including higher education institutions,” said Governor Carney. “Delaware’s colleges and universities not only provide students with an excellent education, but also contribute to economic development in our communities. This funding will assist with the expenses to help ensure a safe environment. But we all need to do our part. Avoid social events with those outside of your household. Wear a face mask in public settings. Wash or sanitize your hands frequently. Stay vigilant and we’ll get through this.”

The Higher Education Relief Fund is funded by the Coronavirus Aid, Relief, and Economic Security (CARES) Act. Eligible institutions include University of Delaware, Delaware State University, Delaware Technical Community College, Wesley College, Wilmington University, Goldey-Beacom College, and Delaware College of Art and Design.

Per federal guidelines, eligible colleges and universities must use the funding on specific expenses that are directly related to COVID-19 response. These expenses include:

• Personal protective equipment
• Equipment purchased to make buildings suitable for COVID-19 safety (plexi-glass, air purifiers, )
• Enhanced cleaning and disinfecting services
• Expenses for technical assistance on mitigation of COVID-19 related threats
• Costs incurred to conduct enhanced screenings for employees and students
• Technology and tele-services needed to adjust to COVID-19 response
• Signage necessary because of the pandemic
• Marketing and media expenses incurred to respond to COVID-19

Continuing to support Delaware higher education institutions and community colleges to avoid tuition increases or reduction in student loan/grants was a recommendation from the Pandemic Resurgence Advisory Committee (PRAC).

Anyone with a question about COVID-19, whether related to medical or social service needs, should call Delaware 2-1-1. Individuals who are deaf or hard of hearing can text their ZIP code to 898-211. Hours of operation are 8 a.m. to 9 p.m. Monday through Friday; 9 a.m. to 5 p.m. Saturday and Sunday. 

Download COVID Alert DE in the App Store or Google Play. 

Report a business for COVID-19 non-compliance using this form

DPH will continue to update the public as more information becomes available. For the latest on Delaware’s response, go to de.gov/coronavirus.

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DOVER – Eligible Delaware small businesses and nonprofits will have until December 4, 2020 to apply for a DE Relief Grant, the Delaware Division of Small Business announced Thursday.

DE Relief Grants are a joint effort between the state of Delaware and New Castle County, administered by the Delaware Division of Small Business. Under the rules of the federal CARES Act, from which the program money comes, the State and County must use available funds by Dec. 31, 2020. The application deadline of December 4 provides time for all applications to be reviewed and funds to be dispersed prior to the end of the year.

The third application round of the $150-million program officially opened last week. In the third round even more businesses are eligible for funds.

Small businesses no longer need to demonstrate a revenue decline of at least 7.5 percent from 2019 to 2020 but instead simply any decrease in revenue, regardless of size. And businesses that received PPP funding of more than $1 million are now eligible as well.

Approved applicants in disproportionately impacted industries will be receiving a 15% bonus allocation in the coming weeks. This bonus will apply to those who have already received grants and those who receive them going forward in a qualifying industry.

To this point, 1,904 applicants have accepted and/or been approved for more than $61 million in grants, with requests for another $31.2 million currently undergoing the review process.

The median grant award has been a little more than $20,000. The typical recipient had a median annual 2019 gross revenue of just under $500,000.

• Microenterprises (fewer than 10 FTE) make up 72% of grant recipients and have received 47% of the total funding – $28.8 million
  • More than half of that went to businesses with fewer than 5 FTE – $15.4 million
• 77% of funding has gone to businesses in disproportionately impacted industries, including restaurants, retail, personal care, childcare, etc. – $47.3 million
• Nearly a quarter of funding has gone to women owned businesses – $15.2 million
• 17% of funding has gone to minority-owned businesses – $10.5 million
• Grant recipients come from each of Delaware’s three counties:

As a reminder, businesses and nonprofits that are applying should make sure to:

• Provide their entire federal 2019 tax return (requirement may be different for nonprofits)
• Submit their current State of Delaware business license
• Confirm their expenses are eligible
• Triple check their application for accuracy before submitting

Due to the positive response from so many businesses, the Division’s application helpline will stay open through the end of the application period from 8:30 am to 4 pm on weekdays. Applicants can call 302-672-6816 for assistance from one of DSB’s regional business managers.

Numerous additional resources can be found at delbiz.com/relief, including an extensive Q&A document, demonstration videos and a full explanation of eligible expenses.

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Media contact
Michael Chesney
Division of Small Business
(302) 943-9508
Michael.Chesney@delaware.gov