District of Columbia Council Period 26 Status: Enacted

B 26-0457 — D.C. Income and Franchise Tax Conformity and Revision Emergency Amendment Act of 2025

Last action — Act A26-0214 Published in DC Register Vol 72 and Page 013684, Expires on Mar 03, 2026

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  1. ✓
    Introduced
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    In Committee
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    Passed Council
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    To Executive
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    Enacted

This bill has been enacted into law. Introduced November 03, 2025. Enacted.

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Bill Text

What changed in the latest version

496 added · 409 removed

Plain-language change summary

The recent amendments to Bill B 26-0457 make some technical changes regarding income and franchise taxes in D.C. Notably, one section was clarified to specify deductions that apply to corporations and businesses, while a new section was added to define deductions for individuals, estates, and trusts. Additionally, a section regarding personal exemptions has been repealed altogether. These changes are important because they aim to simplify tax regulations and ensure they align better with the current needs of residents and businesses in the District.

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_______________________ Councilmember Kenyan R.
ENROLLED ORIGINAL AN ACT __________ IN THE COUNCIL OF DISTRICT OF COLUMBIA _________________ To amend, on an emergency basis, certain provisions of Chapter 18 of Title 47 of the District of Columbia Official Code so that they no longer conform to corresponding provisions of the Internal Revenue Code of 1986 and to make other technical and conforming changes.
McDuffie Chairman Phil Mendelson 4 A BILL __________ 8 IN THE COUNCIL OF DISTRICT OF COLUMBIA _________________ To amend, on an emergency basis, certain provisions of Chapter 18 of Title 47 of the District of Columbia Official Code so that they no longer conform to corresponding provisions of the Internal Revenue Code and to make other technical and conforming changes.
(1) Section designation 47-1803.03 is amended by striking the phrase “Gross income — Deductions.” and inserting the phrase “Gross income — Corporation, financial institution, unincorporated business and partnership deductions.” in its place.
(1) The section designation for section 47-1803.03 is amended to read as follows:
(2) A new section designation 47-1803.04 is added to read as follows:
“47-1803.03.
Gross income — Corporation, financial institution, unincorporated business, and partnership deductions.”.
(2) A new section designation is added to read as follows:
Gross income — Individual, estate, and trust deductions.” (3) Strike section designation 47-1806.02.
Gross income — Individual, estate, and trust deductions.”.
(3) The section designation for section 47-1806.02 is amended to read as follows:
“47-1806.02.
“Tax on residents and nonresidents — Personal exemptions.
[Repealed].”.
“(3A) “Basic standard deduction” means:
“(3A)(A) “Basic standard deduction” means:
“(A) For taxable year ending December 31, 2025:
“(i) For the taxable year ending December 31, 2025:
“(i) In the case of a return filed by a single individual or married individual filing a separate return, $15,000;
“(I) In the case of a return filed by a single individual or married individual filing a separate return, $15,000;
“(ii) In the case of a return filed by a head of household, $22,500;
“(II) In the case of a return filed by a head of household, $22,500;
and “(iii) In the case of a return filed by married individuals filing a joint return, separate on a combined return, or a surviving spouse, $30,000.
and “(III) In the case of a return filed by married individuals filing a joint return, separate on a combined return, or a surviving spouse, $30,000;
“(B) For taxable years beginning after December 31, 2025:
and “(ii) For taxable years beginning after December 31, 2025:
“(i) In the case of a return filed by a single individual or married individual filing a separate return, $15,000, increased annually pursuant to the cost-of-living adjustment (if the adjustment does not result in a multiple of $50, rounded down to the next multiple of $50);
ENROLLED ORIGINAL “(I) In the case of a return filed by a single individual or married individual filing a separate return, $15,000, increased annually pursuant to the cost-of- living adjustment (if the adjustment does not result in a multiple of $50, rounded down to the next multiple of $50);
“(ii) In the case of a return filed by a head of household, $22,500, increased annually pursuant to the cost-of-living adjustment (if the adjustment does not result in a multiple of $50, rounded down to the next multiple of $50);
“(II) In the case of a return filed by a head of household, $22,500, increased annually pursuant to the cost-of-living adjustment (if the adjustment does not result in a multiple of $50, rounded down to the next multiple of $50);
and “(iii) In the case of a return filed by married individuals filing a joint return, separate on a combined return, or a surviving spouse, $30,000 increased annually pursuant to the cost-of-living adjustment (if the adjustment does not result in a multiple of $50, rounded down to the next multiple of $50);
and “(III) In the case of a return filed by married individuals filing a joint return, separate on a combined return, or a surviving spouse, $30,000 increased annually pursuant to the cost-of-living adjustment (if the adjustment does not result in a multiple of $50, rounded down to the next multiple of $50).
and “(C) For purposes of this paragraph, the term “cost-of-living adjustment” shall have the same meaning as set forth in paragraph (11) of this section;
“(B) For purposes of this paragraph, the term “cost-of-living adjustment” shall have the same meaning as set forth in paragraph (11) of this section;
except, that, for purposes of this paragraph, the term “base year” shall mean the calendar year beginning January 1, 2025, or the calendar year beginning one calendar year before the calendar year in which the new dollar amount of the basic standard deduction shall become effective, whichever is later.”.
except, that, the term “base year” shall mean the calendar year beginning January 1, 2025, or the calendar year beginning one calendar year before the calendar year in which the new dollar amount of the basic standard deduction shall become effective, whichever is later.”.
and “(II) The additional standard deduction as prescribed in section 63(c)(3) of the Internal Revenue Code of 1986;” (B) Subparagraph (B) is amended as follows:
and “(II) The additional standard deduction as prescribed in section 63(c)(3) of the Internal Revenue Code of 1986.”.
(B) Subparagraph (B) is amended as follows:
or” (iii) A new sub-subparagraph (v) is added to read as follows:
or” ENROLLED ORIGINAL (iii) A new sub-subparagraph (v) is added to read as follows:
“(I) The basic standard deduction as defined in paragraph (3A);
“(I) The basic standard deduction as defined in paragraph (3A) of this section;
and “(II) The additional standard deduction as prescribed in section 63(c)(3) of the Internal Revenue Code of 1986;” (C) Subparagraph (C) is amended as follows:
and “(II) The additional standard deduction as prescribed in section 63(c)(3) of the Internal Revenue Code of 1986.”.
(C) Subparagraph (C) is amended as follows:
“(I) The basic standard deduction as defined in paragraph (3A);
“(I) The basic standard deduction as defined in paragraph (3A) of this section;
and “(II) The additional standard deduction as prescribed in section 63(c)(3) of the Internal Revenue Code of 1986;” (c) Section 47-1803.02(a) is amended by adding new paragraphs (1B) and (1C) to read as follows:
and “(II) The additional standard deduction as prescribed in section 63(c)(3) of the Internal Revenue Code of 1986.”.
“(1B) For taxable years beginning after December 31, 2024, individuals, estates and trusts who did not elect to itemize shall include any income deducted or otherwise excluded pursuant to § 170(p) of the Internal Revenue Code of 1986 for that taxable year.
(c) Section 47-1803.02(a) is amended by adding new paragraphs (1B) and (1C) to read as follows:
“(1C) For taxable years beginning after December 31, 2024, individuals, estates and trusts shall include any income or gain excluded from their federal gross income pursuant to § 1202(a) of the Internal Revenue Code of 1986 for that taxable year.”.
“(1B) For taxable years beginning after December 31, 2024, individuals, estates, and trusts who did not elect to itemize shall include any income deducted or otherwise excluded pursuant to § 170(p) of the Internal Revenue Code of 1986 for that taxable year.
“(1C) For taxable years beginning after December 31, 2024, individuals, estates, and trusts shall include any income or gain excluded from their federal gross income pursuant to § 1202(a) of the Internal Revenue Code of 1986 for that taxable year.”.
(1) The section heading is amended by striking the phrase Ҥ 47-1803.03.
(1) The section heading is amended to read as follows:
Gross income — Deductions.” and inserting the phrase “§ 47-1803.03.
Ҥ 47-1803.03.
Gross income — Corporation, financial institution, unincorporated business and partnership deductions.” in its place.
Gross income — Corporation, financial institution, unincorporated business, and partnership deductions.”.
“(1) Expenses.
ENROLLED ORIGINAL “(1) Expenses.
“(i) charged to the capital account, and “(ii) allowed as an amortization deduction of such expenditures ratably over the 5-year period beginning with the midpoint of the taxable year in which such expenditures are paid or incurred;
“(i) Charged to the capital account;
and “(ii) Allowed as an amortization deduction of such expenditures ratably over the 5-year period beginning with the midpoint of the taxable year in which such expenditures are paid or incurred;
“(A) In computing the limitation on business interest, as allowed under § 163 of the Internal Revenue Code of 1986, “adjusted taxable income” means the adjusted taxable income determined under § 163(j)(8)(A) of the Internal Revenue Code of 1986;
“(A) In computing the limitation on business interest, as allowed under § of the Internal Revenue Code of 1986, “adjusted taxable income” means the adjusted taxable income determined under § 163(j)(8)(A) of the Internal Revenue Code of 1986;
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except, that § 163(j)(8)(A)(v) shall not apply, and “(B) “Floor plan financing interest”, as defined under § 163(j)(9) of the Internal Revenue Code of 1986, shall not apply.”.
except, that § 163(j)(8)(A)(v) shall not apply;
(C) The lead-in language of paragraph (4)(A) is amended by striking the phrase “Losses sustained during the taxable year and not compensated for by insurance or otherwise” and inserting the phrase “Losses sustained during the taxable year and not compensated for by insurance or otherwise which are deductible under the provisions of § 165 of the Internal Revenue Code of 1986” in its place.
and “(B) “Floor plan financing interest”, as defined under § 163(j)(9) of the Internal Revenue Code of 1986, shall not apply.”.
(C) The lead-in language of paragraph (4)(A) is amended by striking the phrase “Losses sustained during the taxable year and not compensated for by insurance or otherwise:” and inserting the phrase “Losses sustained during the taxable year and not compensated for by insurance or otherwise which are deductible under the provisions of § 165 of the Internal Revenue Code of 1986:” in its place.
“(7) Depreciation.
“(7)(A) Depreciation.
— “(A) A reasonable allowance for exhaustion, wear, and tear of property used in the trade or business, including a reasonable allowance for obsolescence;
— A reasonable allowance for exhaustion, wear, and tear of property used in the trade or business, including a reasonable allowance for obsolescence, and including in the case of natural resources, allowances for depletion as permitted by reasonable rules that the Chief Financial Officer may promulgate.
and including in the case of natural resources, allowances for depletion as permitted by reasonable rules which the Chief Financial Officer may promulgate.
“(ii) There shall be allowed as a deduction for the cost of property elected to be treated as not chargeable to capital account under § 179 of the Internal Revenue Code of 1986 an amount of equal to the lesser of $25,000 or the actual cost of the property for the year the property is placed in service;
ENROLLED ORIGINAL “(ii) There shall be allowed as a deduction for the cost of property elected to be treated as not chargeable to capital account under § 179 of the Internal Revenue Code of 1986 an amount of equal to the lesser of $25,000 or the actual cost of the property for the year the property is placed in service;
“(iv) A depreciation deduction may be allowed for an investor in a shared equity financing agreement as provided in § 47-3507.”.
and “(iv) A depreciation deduction may be allowed for an investor in a shared equity financing agreement as provided in § 47-3507.”.
(E) Paragraph (8) is amended by striking the phrase “For purposes of this section, the term “actually paid”, when used with reference to the District of Columbia, includes compensation waived under § 1-611.15.” and inserting the phrase “For purposes of this section, the term “actually paid”, when used with reference to the District of Columbia, includes compensation waived under § 1-611.15 and no charitable contributions may be carried forward under this paragraph.” in its place.
(E) Paragraph (8) is amended by striking the phrase “For purposes of this section, the term “actually paid”, when used with reference to the District of Columbia, includes compensation waived under § 1-611.15.” and inserting the phrase “For purposes of this section, the term “actually paid”, when used with reference to the District of Columbia, includes compensation waived under § 1-611.15, and no charitable contributions may be carried forward under this paragraph.” in its place.
(ii) Subparagraph (B) is amended as follows:
(ii) Subparagraph (A) is amended by striking the semicolon and inserting a period in its place.
(iii) Subparagraph (B) is amended as follows:
“(ii) For amounts invested in a QOF after December 31, 2026, the reduction of capital gains tax liability through a 10% step-up basis, if invested in a QOF for 5 years, pursuant to § 1400Z-2(b) of the Internal Revenue Code of 1986, shall be realized only if the taxpayer invests in a QOF that meets the criteria set forth in subparagraph (D) of this paragraph;”.
“(ii) For amounts invested in a QOF after December 31, 2026, the reduction of capital gains tax liability through a 10% step-up basis, if invested in a QOF for 5 years, pursuant to § 1400Z-2(b) of the Internal Revenue Code of 1986, shall be realized only if the taxpayer invests in a QOF that meets the criteria set forth in subparagraph (D) of this paragraph.”.
(iii) Subparagraph (C) is amended as follows:
(iv) Subparagraph (C) is amended as follows:
“(ii) For amounts invested in a QOF after December 31, 2026, the abatement of capital gains tax on an investment of capital gains held in a QOF for at least 10 years, pursuant to § 1400Z-2(c) of the Internal Revenue Code of 1986, shall be realized only if the taxpayer invests in a QOF that meets the criteria set forth in subparagraph (D) of this paragraph;”.
“(ii) For amounts invested in a QOF after December 31, 2026, the abatement of capital gains tax on an investment of capital gains held in a QOF for at least 10 years, pursuant to § 1400Z-2(c) of the Internal Revenue Code of 1986, shall be realized only if the taxpayer invests in a QOF that meets the criteria set forth in subparagraph (D) of this paragraph.”.
(3) Subsections (b), (b-1), (b-2), (b-3), and (b-4) are repealed.
ENROLLED ORIGINAL (3) Subsections (b), (b-1), (b-2), (b-3), and (b-4) are repealed.
(4) Subsection (d)(6) is amended is amended to read as follows:
(4) Subsection (d)(6) is amended to read as follows:
— “(1) Individuals.
“(1) Individuals.
— An individual is allowed either the standard deduction or itemized deductions (including the additional deductions set forth in subsection (e) of this section, if applicable) as set forth in this section.
An individual is allowed either the standard deduction or itemized deductions (including the additional deductions set forth in subsection (e) of this section, if applicable) as set forth in this section.
— An estate or trust is allowed the itemized deductions (including the additional deductions set forth in subsection (e) of this section, if applicable) and any deductions allowed under § 47-1809.05.
An estate or trust is allowed the itemized deductions (including the additional deductions set forth in subsection (e) of this section, if applicable) and any deductions allowed under § 47-1809.05.
— If an individual elects to claim the standard deduction on the individual’s federal income tax return, the individual must claim the standard deduction as defined in § 47-1801.04(44) and no itemized deductions and other additions to the standard deduction are allowed, except as otherwise provided in this chapter.
If an individual elects to claim the standard deduction on the individual’s federal income tax return, the individual must claim the standard deduction as defined in § 47-1801.04(44), and no itemized deductions and other additions to the standard deduction are allowed, except as otherwise provided in this chapter.
“(2) In the case of an individual whose District of Columbia adjusted gross income exceeds the applicable amount, the amount of the itemized deductions otherwise allowable for the taxable year shall be reduced by 5% of the excess of the District of Columbia adjusted gross income over the applicable amount.
“(2)(A) In the case of an individual whose District of Columbia adjusted gross income exceeds the applicable amount, the amount of the itemized deductions otherwise allowable for the taxable year shall be reduced by 5% of the excess of the District of Columbia adjusted gross income over the applicable amount.
For the purposes of this paragraph:
“(B) For the purposes of this paragraph, the term:
“(A) The term “applicable amount” means $200,000 ($100,000, married filing separately).
“(i) “Applicable amount” means $200,000 ($100,000, married filing separately);
“(B) The term “itemized deductions” does not include the deduction:
and “(ii) “Itemized deductions” does not include the deduction:
“(i) Under § 213 of the Internal Revenue Code of 1986 relating to expenses such as, for example, medical or dental;
ENROLLED ORIGINAL “(I) Under § 213 of the Internal Revenue Code of 1986 relating to expenses such as, for example, medical or dental;
“(ii) For investment interest, as defined in §163(d) of the Internal Revenue Code of 1986;
“(II) For investment interest, as defined in § 163(d) of the Internal Revenue Code of 1986;
and “(iii) Under § 165(a) of the Internal Revenue Code of 1986, for casualty or theft losses described in § 165(c)(2) and (3) of the Internal Revenue Code of 1986, or for losses described in § 165(d) of the Internal Revenue Code of 1986.
and “(III) Under § 165(a) of the Internal Revenue Code of 1986, for casualty or theft losses described in § 165(c)(2) and (3) of the Internal Revenue Code of 1986, or for losses described in § 165(d) of the Internal Revenue Code of 1986.
Any deduction passing to a stockholder in a small business corporation as defined in § 1371 of the Internal Revenue Code of 1954, making an election under § 1372(a) of the Internal Revenue Code of 1954, or an S Corporation as defined in § 1361(a) and (b) of the Internal Revenue Code of 1986, making an election under § 1362(a) of the Internal Revenue Code of 1986, which is otherwise deductible under the provisions of subsection (a) of this section and which was allowable in determining the taxable income of the small business corporation or S Corporation subject to tax under the provisions of subchapter VII of this chapter;
Any deduction passing to a stockholder in a small business corporation as defined in § 1371 of the Internal Revenue Code of 1954, making an election under § 1372(a) of the Internal Revenue Code of 1954, or an S Corporation as defined in § 1361(a) and (b) of the Internal Revenue Code of 1986, making an election under § 1362(a) of the Internal Revenue Code of 1986, that is otherwise deductible under the provisions of subsection (a) of this section and that was allowable in determining the taxable income of the small business corporation or S Corporation subject to tax under the provisions of subchapter VII of this chapter;
“(e) Additional deductions allowed - The following additional deductions are allowed as deductions from gross income in computing net income of any individual, estate, or trust, as the case may be:
“(e) Additional deductions allowed.
The following additional deductions are allowed as deductions from gross income in computing net income of any individual, estate, or trust, as the case may be:
“(A) For taxable years beginning on or after January 1, 2006, an individual who has been a classroom teacher in a public school or public charter school in the District of Columbia for the entire year for which the individual is filing or for the entire year prior to the year for which the individual is filing and is approved for teaching by the District of Columbia Public Schools may deduct from gross income:
“(A) For taxable years beginning on or after January 1, 2006, an individual who has been a classroom teacher in a public school or public charter school in the District of Columbia for the entire year for which the individual is filing or for the entire year prior to the ENROLLED ORIGINAL year for which the individual is filing and is approved for teaching by the District of Columbia Public Schools may deduct from gross income:
provided, that the deduction shall not exceed $1,500 per year, per individual, whether the individual files individually or jointly;
provided, that the deduction shall not exceed $1,500 per year, per individual, whether the individual files individually or jointly.
and “(B) The deductions under subparagraph (A) of this subsection shall not be allowed to the extent the same expenses were claimed by the individual in computing federal adjusted gross income for the same taxable year under the Internal Revenue Code 1986;
“(B) The deductions under subparagraph (A) of this paragraph shall not be allowed to the extent the same expenses were claimed by the individual in computing federal adjusted gross income for the same taxable year under the Internal Revenue Code 1986.
and “(2) Capital Gains from a Qualified Opportunity Fund.
“(2) Capital Gains from a Qualified Opportunity Fund.
– The capital gains deduction for investing in a qualified opportunity fund in the same manner as set forth in § 47- 1803.03(a)(20).
The capital gains deduction for investing in a qualified opportunity fund in the same manner as set forth in § 47- 1803.03(a)(20).
(1) Paragraph (1) is amended by striking the phrase “Every nonresident of the District receiving income subject to tax pursuant to this chapter and every resident of the District, except a fiduciary, who is required to file a federal return under the provisions of § 6012 of the Internal Revenue Code of 1986.” and inserting the phrase “Every individual having for the taxable year, gross income which equals or exceeds the applicable basic standard deduction as defined under § 47–1801.04(3A).” in its place.
(1) Paragraph (1) is amended by striking the phrase “Every nonresident of the District receiving income subject to tax pursuant to this chapter and every resident of the District, except a fiduciary, who is required to file a federal return under the provisions of § 6012 of the Internal Revenue Code of 1986.” and inserting the phrase “Every individual having for the taxable year, gross income which equals or exceeds the applicable basic standard deduction as defined under § 47-1801.04(3A).” in its place.
(i) Section 47-1806.04(c)(1) is amended as follows:
(i) Section 47-1806.04 is amended as follows:
(1) The existing text is designated as subparagraph (A).
(1) Subsection (c)(1) is amended as follows:
(2) The newly designated subparagraph (A) is amended by striking the phrase “after December 31, 1988” and inserting the phrase “after December 31, 1988, but before January 1, 2025” in its place.
(A) The existing text is designated as subparagraph (A).
(3) A new subparagraph (B) is added to read as follows:
ENROLLED ORIGINAL (B) Subparagraph (A) is amended by striking the phrase “after December 31, 1988,” and inserting the phrase “after December 31, 1988, but before January 1, 2025,” in its place.
(C) A new subparagraph (B) is added to read as follows:
(j) Section 47-1809.05 is amended as follows:
(2) Subsection (f)(1) is amended as follows:
(1) The lead-in language is amended by striking the phrase “except as to the personal exemptions and credits for dependents, and except that” and inserting the phrase “except that” in its place.
(A) Subparagraph (B-2) is amended by striking the figure “85%” and inserting the figure “100%” in its place.
(B) Subparagraph (B-3) is repealed.
(j) Section 47-1806.17 is revived as of October 1, 2024, and amended to read as follows:
Ҥ 47-1806.17.
Child tax credit.
“(a) For taxable years beginning after December 31, 2025, there shall be allowed a credit against the tax imposed by this chapter for each qualifying child of the taxpayer for which the taxpayer is allowed a deduction under § 151 of the Internal Revenue Code of 1986.
“(b)(1) The amount of the credit shall be calculated as follows:
“(A) For the taxable year beginning January 1, 2026, $1,000 for each qualifying child who has not reached the age of 18 years by December 31, 2025;
and “(B) For taxable years beginning after December 31, 2026, $1,000 for each qualifying child who has not reached the age of 18 years by December 31 of the taxable year, increased annually pursuant to the cost-of-living adjustment (if the adjustment does not result in a multiple of $5, rounded down to the next multiple of $5).
“(2) The amount of the credit shall be reduced by $50 for each $1,000 (or fraction thereof) by which the taxpayer’s adjusted gross income exceeds the threshold amount;
except, that the reductions cannot reduce the credit below zero.
“(3) In the case of a return made for a fractional part of a taxable year, the credit allowable under this section shall be reduced to an amount that bears the same ratio to the full credit provided as the number of months in the period for which the return is made to 12 months.
“(c) The credit claimed under this section in a taxable year may exceed the taxpayer’s tax liability under this subchapter for that taxable year and shall be refundable to the taxpayer claiming the credit.
Any refunds paid to the taxpayer pursuant to this section shall not be considered income for the purpose of determining eligibility for or benefit amount of public assistance.
“(d) Notwithstanding any other provision of this section, a taxpayer shall not be eligible to receive a credit if:
ENROLLED ORIGINAL “(1) The taxpayer does not claim the qualifying child as a dependent on the taxpayer’s federal and District income tax returns for that taxable year;
or “(2) The taxpayer was not a resident of the District for the entire calendar year preceding the year in which a claim for this credit is filed.
“(e) For the purposes of this section, the term:
“(1) “Base year” means the calendar year beginning January 1, 2026, or the calendar year beginning one calendar year before the calendar year in which the new dollar amount of the credit amount or eligibility income threshold amount shall become effective, whichever is later.
“(2) “Consumer Price Index” means the average of the Consumer Price Index for All Urban Consumers for the Washington-Arlington-Alexandria DC-MD-VA-WV Metropolitan Statistical Area (or such successor metropolitan statistical area that includes the District), or any successor index, as of the close of the 12-month period ending on July 31 of such calendar year.
“(3) Cost-of-living adjustment” means an amount, for any calendar year, equal to a dollar amount set forth in this section multiplied by the difference between the Consumer Price Index for the preceding calendar year and the Consumer Price Index for the base year, divided by the Consumer Price Index for the base year.
“(4) “Dependent” shall have the same meaning as set forth under § 152 of the Internal Revenue Code of 1986.
“(5) “Qualifying child” shall have the same meaning as set forth under § 152(c) of the Internal Revenue Code of 1986.
“(6) “Threshold amount” means the adjusted gross income reported on the taxpayer’s return in the following amounts:
“(A) For the taxable year beginning January 1, 2026:
“(i) $55,000 in the case of an unmarried individual filing as single, head of household, or qualifying widow(er);
“(ii) $70,000 in the case of married individuals or registered domestic partners filing either jointly or separately on a combined return;
or “(iii) $35,000 in the case of an individual filing as married filing separately.
“(B) For taxable years beginning after December 31, 2026, increased annually pursuant to the cost-of-living adjustment (if the adjustment does not result in a multiple of $100, rounded down to the next multiple of $100):
“(i) $55,000 in the case of an unmarried individual filing as single, head of household, or qualifying widow(er);
“(ii) $70,000 in the case of married individuals or registered domestic partners filing either jointly or separately on a combined return;
or “(iii) $35,000 in the case of an individual filing as married filing separately.”.
(k) Section 47-1809.05 is amended as follows:
ENROLLED ORIGINAL (1) The lead-in language is amended by striking the phrase “except as to the personal exemptions and credits for dependents, and except that:” and inserting the phrase “except that:” in its place.
and” in its place;
and” in its place.
and (3) Paragraph (4) is repealed.
(3) Paragraph (4) is repealed.
(k) Section 47-1811.04 is amended as follows:
(l) Section 47-1811.04 is amended as follows:
(1) The lead-in language is amended by striking the phrase “§ 47-1803.03(a)(7) and (b-3)” and inserting the phrase “§§ 47-1803.03(a)(7) and 47-1803.04(e)(3)” in its place (2) A new paragraph (3) is added to read as follows:
(1) The lead-in language is amended by striking the phrase “§ 47-1803.03(a)(7) and (b-3)” and inserting the phrase “§§ 47-1803.03(a)(7) and 47-1803.04(e)(3)” in its place (2) New paragraphs (3) and (4) are added to read as follows:
and” (3) A new paragraph (4) is added as follows:
and” “(4) A depreciation deduction may be allowed for an investor in a shared equity financing agreement as provided in § 47-3507.”.
“(4) A depreciation deduction may be allowed for an investor in a shared equity financing agreement as provided in § 47-3507.”.
(m) Section 47-1812.08 is amended as follows:
(l) Section 47-1812.08 is amended as follows:
(C) Strike the phrase “5% of” and inserting the phrase “the highest applicable rate of tax set forth in § 47-1806.03 applied to” in its place.
(C) Strike the phrase “5% of” and insert the phrase “the highest applicable rate of tax set forth in § 47-1806.03 applied to” in its place.
(A) Paragraph (1) is amended by striking the phrase “the Mayor” and inserting the phrase “the Chief Financial Officer” in its place (B) Paragraph (1A) is amended by striking the phrase “Notwithstanding which method of determination for withholding set forth in paragraph (1) of this subsection is used, no allowance for the standard deduction shall be permitted” and inserting the phrase “For the purposes of this subsection, the terms “allowance” and “exemption” shall have the same meaning.” in its place.
(A) Paragraph (1) is amended by striking the phrase “the Mayor” and inserting the phrase “the Chief Financial Officer” in its place (B) Paragraph (1A) is amended to read as follows:
“(1A) For the purposes of this subsection, the terms “allowance” and “exemption” shall have the same meaning.” in its place.
(i) Subparagraph (D) is amended by striking the phrase “The Council of the District of Columbia” and inserting the phrase “The Chief Financial Officer” in its place.
(i) The lead-in language of subparagraph (D) is amended by striking the phrase “The Council of the District of Columbia” and inserting the phrase “The Chief Financial Officer” in its place.
(C) Paragraph (7) is amended by striking the phrase “the Council of the District of Columbia” and inserting the phrase “the Chief Financial Officer” in its place.
ENROLLED ORIGINAL (C) Paragraph (7) is amended by striking the phrase “the Council of the District of Columbia” and inserting the phrase “the Chief Financial Officer” in its place.
(B) Paragraph (2) is amended by striking the phrase “the Council of the District of Columbia” and inserting the phrase “the Chief Financial Officer” in its place.
(B) Paragraph (2) is amended by striking the phrase “The Council of the District of Columbia” and inserting the phrase “The Chief Financial Officer” in its place.
(E) Paragraph (7) is amended by striking the phrase “the Council of the District of Columbia” and inserting the phrase “the Chief Financial Officer” in its place.
(E) Paragraph (7) is amended by striking the phrase “The Council of the District of Columbia” and inserting the phrase “The Chief Financial Officer” in its place.
Conforming Amendments.
(a) The Child Tax Credit Amendment Act of 2025, enacted on September 4, 2025 (D.C.
Act 26-148;
72 DCR 9825), is repealed.
(b) The Child Tax Credit Emergency Amendment Act of 2025, effective September 3, (D.C.
Act 26-146;
72 DCR 9623), is repealed.
ENROLLED ORIGINAL (c) The Child Tax Credit Congressional Review Emergency Amendment Act of 2025, passed on emergency basis on November 4, 2025 (Enrolled version of Bill 26-450), is repealed.
Sec.
4.
4.
5.
The Council adopts the fiscal impact statement of the Chief Financial Officer as the fiscal impact statement required by section 602(c)(3) of the District of Columbia Home Rule Act, approved December 24, 1973 (87 Stat.
The Council adopts the fiscal impact statement of the Chief Financial Officer as the fiscal impact statement required by section 4a of the General Legislative Procedures Act of 1975, approved October 16, 2006 (120 Stat.
813;
2038;
Code § 1- 206.02(c)(3)).
Code § 1-301.47a).
5.
6.
This act shall take effect following approval by the Mayor (or in the event of veto by the Mayor, action by the Council to override the veto), and shall remain in effect for no longer than 90 days, as provided for emergency acts of the Council of the District of Columbia in section 412(a) of the District of Columbia Home Rule Act, approved December 24, 1973 (87 Stat.
This act shall take effect following approval by the Mayor (or in the event of veto by the Mayor, action by the Council to override the veto), and shall remain in effect for no longer than days, as provided for emergency acts of the Council of the District of Columbia in section 412(a) of the District of Columbia Home Rule Act, approved December 24, 1973 (87 Stat.
18
___________________________________ Chairman Council of the District of Columbia _________________________________ Mayor District of Columbia 13
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Action History

  1. Act A26-0214 Published in DC Register Vol 72 and Page 013684, Expires on Mar 03, 2026

  2. Enacted without Mayor's Signature with Act Number A26-0214, Expires on Mar 03, 2026

  3. Returned from Mayor

  4. Transmitted to Mayor, Response Due on Dec 02, 2025

  5. Final Reading

  6. Amendment (McDuffie)

  7. Amendment (Mendelson)

  8. Amendment (Parker, Nadeau, Felder, Bonds, Allen, Frumin, Pinto, R. White, T. White, Lewis George)

  9. Retained by the Council

  10. B26-0457 Introduced by Chairman Mendelson at Office of the Secretary

Sponsors

Sponsorship breakdown

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1 sponsors · 0 co-sponsors · 13 not signed on · 10 voted No

Sponsors (1)

Co-sponsors (0)

None.

Not signed on (13)

"Not signed on" means a member has not sponsored or co-sponsored this bill — it does not imply opposition. Members flagged Voted No have a recorded No vote on this bill.

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Votes

Amendment (McDuffie)

Passed 7 Yea · 4 Nay · 2 Other
Party YeaNayPresentNot Voting
Unaffiliated 7402
Total 7402
% of votes cast 54%31%0%15%
How each member voted (13)
Member Party Vote
Anita Bonds — Yea
Brianne K. Nadeau — Yea
Brooke Pinto — Nay
Charles Allen — Yea
Christina Henderson — Not Voting
Janeese Lewis George — Yea
Kenyan R. McDuffie — Yea
Matthew Frumin — Nay
Phil Mendelson — Yea
Robert C. White, Jr. — Nay
Trayon White, Sr. — Not Voting
Wendell Felder — Yea
Zachary Parker — Nay

Amendment (Parker, Nadeau, Felder, Bonds, Allen, Frumin, Pinto, R. White, T. White, Lewis George)

Passed 11 Yea · 1 Nay · 1 Other
Party YeaNayPresentNot Voting
Unaffiliated 11101
Total 11101
% of votes cast 85%8%0%8%
How each member voted (13)
Member Party Vote
Anita Bonds — Yea
Brianne K. Nadeau — Yea
Brooke Pinto — Yea
Charles Allen — Yea
Christina Henderson — Not Voting
Janeese Lewis George — Yea
Kenyan R. McDuffie — Yea
Matthew Frumin — Yea
Phil Mendelson — Nay
Robert C. White, Jr. — Yea
Trayon White, Sr. — Yea
Wendell Felder — Yea
Zachary Parker — Yea

Amendment (Mendelson)

Failed 3 Yea · 10 Nay
Party YeaNayPresentNot Voting
Unaffiliated 31000
Total 31000
% of votes cast 23%77%0%0%
How each member voted (13)
Member Party Vote
Anita Bonds — Nay
Brianne K. Nadeau — Nay
Brooke Pinto — Nay
Charles Allen — Nay
Christina Henderson — Nay
Janeese Lewis George — Nay
Kenyan R. McDuffie — Yea
Matthew Frumin — Nay
Phil Mendelson — Yea
Robert C. White, Jr. — Nay
Trayon White, Sr. — Nay
Wendell Felder — Yea
Zachary Parker — Nay

Final Reading

Passed 13 Yea · 0 Nay
Party YeaNayPresentNot Voting
Unaffiliated 13000
Total 13000
% of votes cast 100%0%0%0%
How each member voted (13)
Member Party Vote
Anita Bonds — Yea
Brianne K. Nadeau — Yea
Brooke Pinto — Yea
Charles Allen — Yea
Christina Henderson — Yea
Janeese Lewis George — Yea
Kenyan R. McDuffie — Yea
Matthew Frumin — Yea
Phil Mendelson — Yea
Robert C. White, Jr. — Yea
Trayon White, Sr. — Yea
Wendell Felder — Yea
Zachary Parker — Yea

Subjects

taxation
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Frequently asked questions

Who sponsors B 26-0457?
B 26-0457 is sponsored by Phil Mendelson.
What is the current status of B 26-0457?
This bill has been enacted into law. Introduced November 03, 2025. Enacted.
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