Delaware bill introduced to increase tax exemptions for veteran pensions

DOVER, Del. – A new piece of legislation looks to ease the financial burden that retired veterans face in Delaware.

Senate Bill 201, introduced Thursday, would increase the state income tax pension exclusion for military pensioners in Delaware over a three year period. Meaning that, if passed, retired veterans will have more money in their pockets at the end of the day.

“It essentially says that when you collect your pension check, the State of Delaware is going to take less out of that check for taxes, for income tax purposes,” explained Senator Eric Buckson, the bill’s primary sponsor.

During their active service, veterans are trained in a wide array of diverse skill sets. Skill sets that Sen. Buckson says should stay in the State of Delaware, and that this is a bill that will incentivize just that.

“Folks who dedicate their lives to serving the country, they come with a very unique skill set that is not often found anymore in today’s society,” Sen. Buckson said. “We want those bright minds to stay here and reinvest in the State of Delaware and become part of our workforce for years to come.”

In 2022, Delaware increased the pension exclusion for military pensioners under 60 to $12,500. This legislation, over the course of a three year period, would increase the exemption, regardless of age, to $25,000 for all military pensioners.

Dave Skocik, president of the Delaware Veterans Coalition, supports the legislation and tells us how it could actually be of great economic benefit to Delawareans.

“It will also benefit taxpayers in Delaware because veterans who stay here bring a lot of money into this state and they will spend that money here, particularly veterans who are retired and are on disability,” Skocik explained. “We’ve got to take care of those who serve if we want their children to raise their right hands to protect us because right now it’s fewer than one-percent of people in this country who actually volunteer to serve in our great nation.”

Skocik went on to explain how efforts are underway by the Delaware Veterans Coalition’s to have a special Secretary of Veterans Affairs appointed to serve in the Governor’s cabinet, an effort he says they’ll be pursuing over the course of the next year.

Senate Bill 201 has bipartisan support and currently awaits consideration in the Senate Executive Committee.