AN ACT TO AMEND TITLE 30 OF THE DELAWARE CODE RELATING TO EXCLUSION OF MILITARY PENSIONS FROM TAXABLE INCOME.

Removed the requirement that individuals age 60 or older must be legally domiciled in Delaware for at least 3 years (if domiciled before Jan 1, 2027) or 5 years (if domiciled on or after Jan 1, 2027) to qualify for the military pension subtraction.

Removed the provision clarifying that dollar limits apply individually to each spouse receiving a military pension on a joint return, with the total not exceeding twice the per-person limit.

The final bill text lays out the full phased-in schedule: $12,500 for taxable years 2022-2026, $15,000 for 2027, $20,000 for 2028, and $25,000 for 2029 and beyond, as the military-specific exemption (the greater of the general pension limit or the military-specific limit).

Added formal definitions for 'eligible retirement income' (qualified plan distributions, 401(k), 457 plans, dividends, capital gains, interest, and net rental income) and 'United States military pension' (service in Army, Navy, Air Force, Marine Corps, Space Force, Coast Guard, NOAA commissioned corps, Public Health Service commissioned corps, or National Guard).

The bill now applies the increased military pension exemption regardless of age, with the 'greater of' language ensuring those under 60 get at least $12,500 (rising to $25,000) and those 60 or older also benefit from the same increasing military-specific limit.