By James DeChene, Armitage DeChene & Associates
The General Assembly returned to session in January remaining in virtual format. A number of bills were introduced that will have an impact to business, including an increase in Delaware’s Renewable Portfolio Standards, the Governor’s recommended budget, and several bills related to wages in Delaware.
First, SB33 increases the amount of renewable energy sources to be included in the mix of energy the regulated utilities in Delaware provide, up to 40% by 2035. The current percentage stands at 25% by 2025. Long-term forecasting shows a drop in the cost of renewables over time, becoming roughly $1.00 added to the cost to the average utility bills, where the current add-on cost is roughly $8.00. The bill passed the House and Senate, and is now in front of the Governor for signature.
Another bill, HB64, creates new personal income tax brackets for high earners, starting at 7.1% for those making $125,000 and topping out at 8.6% for those earning $500,000. Bills have also been introduced to remove the youth and training wage from the state’s minimum wage, and to raise Delaware’s minimum wage to $10.50 in 2022, with yearly increases reaching $15 by 2025.
The Chamber is looking for feedback from members on how any of these proposals may impact your company or employees. Please direct feedback to Tyler Micik.
The General Assembly is in recess through the month of February for Joint Finance Committee meetings.