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B 26-0457

D.C. Income and Franchise Tax Conformity and Revision Emergency Amendment Act of 2025

26th Council Period (2025-2026) Introduced by Phil Mendelson

D.C. Income and Franchise Tax Conformity and Revision Emergency Amendment Act of 2025 SummaryThe D.C. Income and Franchise Tax Conformity and Revision Emergency Amendment Act of 20

Transmitted to Mayor, Response Due on Dec 02, 2025
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Bill Summary · B 26-0457

D.C. Income and Franchise Tax Conformity and Revision Emergency Amendment Act of 2025

Summary

The D.C. Income and Franchise Tax Conformity and Revision Emergency Amendment Act of 2025 is an emergency bill that aims to update and conform the District of Columbia's personal income tax and business franchise tax laws with recent changes in the federal tax code. The key provisions of the bill include:

  1. Conformity with Federal Tax Code: The bill aligns the District's personal income tax and business franchise tax laws with the current federal Internal Revenue Code, ensuring that D.C. taxpayers receive the same deductions, credits, and tax treatment as federal filers.

  2. Individual Income Tax Revisions: The bill updates D.C.'s individual income tax rates, brackets, and standard deductions to match the latest federal changes. This includes adjusting the top marginal rate and expanding certain deductions.

  3. Business Franchise Tax Revisions: The bill revises the District's business franchise tax to incorporate federal corporate tax changes, such as updated depreciation schedules and the treatment of pass-through business income.

  4. Effective Date and Temporary Nature: The bill would take effect immediately upon mayoral approval and remain in place for 90 days as an emergency measure. This is intended to quickly update D.C. tax laws before the next tax filing season, with a follow-up permanent amendment bill to be considered by the Council.

Impacts

The bill's primary impacts would be:

  • Ensuring D.C. taxpayers, both individuals and businesses, receive the same tax treatment and benefits as their federal counterparts, avoiding confusion and potential over-payments.
  • Updating the District's tax code to align with the latest federal changes, maintaining the competitiveness of D.C.'s tax environment.
  • Providing a temporary emergency fix to address the time-sensitive nature of conforming D.C.'s taxes before the next filing season, with a permanent solution to follow.

Overall, the bill is intended to streamline D.C. tax administration, provide tax relief, and maintain the city's tax competitiveness in the region.

Compiled from official sources — confirm details with the bill’s official record.

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