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ENROLLED ORIGINAL
AN ACT
D.C. ACT 26-214
IN THE COUNCIL OF DISTRICT OF COLUMBIA.
DECEMBER 3, 2025
Toamend,onanemergencybasis,certainprovisionsofChapter18ofTitle47oftheDistrictofColumbiaOfficialCodesothattheynolongerconformtocorrespondingprovisionsoftheInternalRevenueCodeof1986andtomakeothertechnicalandconformingchanges.
BE IT ENACTED BY THE COUNCIL OF THE DISTRICT OF COLUMBIA, Thatthis
actmay be citedasthe“D.C.Income and FranchiseTax Conformityand RevisionEmergency
AmendmentActof2025”.
Sec.2.Chapter18ofTitle47oftheDistrictofColumbiaOfficialCodeisamendedasfollows:
(a)Thetableofcontentsisamendedasfollows:(1)Thesectiondesignationforsection47-1803.03isamendedtoreadasfollows:“47-1803.03.Grossincome— Corporation,financialinstitution,unincorporatedbusiness,andpartnershipdeductions.”.(2)A newsectiondesignationisaddedtoreadasfollows:“47-1803.04.Grossincome— Individual,estate,andtrustdeductions.”.(3)Thesectiondesignationforsection47-1806.02isamendedtoreadasfollows:“47-1806.02.“Taxonresidentsandnonresidents— Personalexemptions.[Repealed].”.(b)Section47-1801.04 isamended as follows:
(1)A newparagraph(3A)isaddedtoreadasfollows:“(3A)(A) “Basic standarddeduction”means:
“(i)ForthetaxableyearendingDecember31,2025:
“()Inthecaseofareturnfiledbyasingleindividualormarriedindividualfilingaseparatereturn,$15,000;“(II)Inthecaseofareturnfiledbyaheadofhousehold,$22,500;and
“(IIDInthecaseofa returnfiledbymarriedindividualsfilingajointreturn,separateonacombinedretum,orasurvivingspouse,$30,000;and“(ii)FortaxableyearsbeginningafterDecember31,2025:
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ENROLLED ORIGINAL
“(1)Inthecaseofa returnfiledbyasingleindividualormarriedindividualfilingaseparatereturn,$15,000,increasedannuallypursuanttothecost-of-livingadjustment(iftheadjustmentdoesnotresultinamultipleof$50,roundeddowntothenextmultipleof$50); “(11)Inthecaseofa returnfiledbyaheadofhousehold,$22,500,increasedannuallypursuanttothecost-of-livingadjustment(iftheadjustmentdoesnotresultinamultipleof$50,roundeddowntothenextmultipleof$50);and“(IIT)Inthecaseofa returnfiledbymarriedindividualsfilingajointreturn,separateonacombinedreturn,orasurvivingspouse,$30,000increasedannuallypursuanttothecost-of-livingadjustment(iftheadjustmentdoesnotresultinamultiple
of$50,roundeddowntothenextmultipleof$50).“(B)Forpurposesofthisparagraph,theterm“cost-of-livingadjustment”shallhavethesamemeaningassetforthinparagraph(11)ofthissection;except,that,theterm“baseyear”shallmeanthecalendaryearbeginningJanuary1,2025,orthecalendaryear
beginningonecalendaryearbeforethecalendaryearinwhichthenewdollaramountofthebasicstandarddeductionshallbecomeeffective,whicheverislater.”.(2)Paragraph(11)(A)isamendedbystrikingthephrase“ofthissectionor§§47-1806.02(1)(1)(A)and(i)”andinsertingthephrase“ofthissection”initsplace.(3)Paragraph(44)isamendedasfollows:(A)Subparagraph(A)isamendedasfollows:(iSub-subparagraph(iii)isamendedbystrikingthephrase“;or”andinsertingasemicoloninitsplace.
(ji)Sub-subparagraph(iv)isamendedtoreadasfollows:“(iv)FortaxableyearsbeginningafterDecember31,2017,but
beforeJanuary1,2025,thestandarddeductionasprescribedinsection63(c)oftheInternalRevenueCodeof1986;or”(iii)A newsub-subparagraph(v)isaddedtoreadasfollows:“(v)FortaxableyearsbeginningafterDecember31,2024,theterm
“standarddeduction”meansthesumof:“(1)Thebasicstandarddeductionasdefinedinparagraph,(A)ofthissection;and “(II)Theadditionalstandarddeductionasprescribedin
section63(c)(3)oftheInternalRevenueCodeof1986.”.(B)Subparagraph(B)isamendedasfollows:(i)Sub-subparagraph(iii)isamendedbystrikingthephrase“;ot”andinsertingasemicoloninitsplace.(ii)Sub-subparagraph(iv)isamendedtoreadasfollows:“(iv)FortaxableyearsbeginningafterDecember31,2017,but
beforeJanuary1,2025,thestandarddeductionasprescribedinsection63(c)oftheInternalRevenueCodeof1986;or”
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ENROLLED ORIGINAL.
(iii)A newsub-subparagraph(v)isaddedtoreadasfollows:“(v)FortaxableyearsbeginningafterDecember31,2024,theterm“standarddeduction”meansthesumof:“(1)Thebasicstandarddeductionasdefinedinparagraph(BA)ofthissection;and “(IT)Theadditionalstandarddeductionasprescribedinsection63(c)(3)oftheInternalRevenueCodeof1986.”.(C)Subparagraph(C)isamendedasfollows:
(i)Thelead-inlanguageisamendedbystrikingthephrase“marriedindividuals”andinsertingthephrase“marriedindividualsorregistereddomesticpartners”initsplace.
(ii)Sub-subparagraph(iandinsertingasemicoloninitsplace.
ii)Sub-subparagraph(jv)isamendedtoreadasfollows:“(iv)FortaxableyearsbeginningafterDecember31,2017,butbeforeJanuary1,2025,thestandarddeductionasprescribedinsection63(c)oftheInternalRevenueCodeof1986;or”
isamendedbystrikingthephrase“;or”
(iv)A newsub-sub-subparagraph(v)isaddedtoreadasfollows:
“(v)FortaxableyearsbeginningafterDecember31,2024,theterm“standarddeduction”meansthesumof:“())Thebasicstandarddeductionasdefinedinparagraph(BA)ofthissection;and
“(IDTheadditionalstandarddeductionasprescribedinsection63(c)(3)oftheInternalRevenueCodeof1986.”.
(©)Section47-1803.02(a)isamendedbyaddingnewparagraphs(1B)and(1C)toreadasfollows: “(1B)FortaxableyearsbeginningafterDecember31,2024,individuals,estates,
andtrustswhodidnotelecttoitemizeshallincludeanyincomedeductedorotherwiseexcludedpursuantto§170(p)oftheInternalRevenueCodeof1986forthattaxableyear.“(IC)FortaxableyearsbeginningafierDecember31,2024,individuals,estates,
andtrustsshallincludeanyincomeorgainexcludedfromtheirfederalgrossincomepursuantto
§1202(a)oftheInternalRevenueCodeof1986forthattaxableyear.”.
(d)Section47-1803.03isamendedasfollows:
(1)Thesectionheadingisamendedtoreadasfollows:“§47-1803.03.Grossincome— Corporation,financialinstitution,unincorporatedbusiness,andpartnershipdeductions.”.(2)Subsection(a)isamendedasfollows:(A)Paragraph(1)isamendedtoreadasfollows:
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ENROLLED ORIGINAL.
“(1)Expenses.— Alltheordinaryandnecessaryexpensespaidorincurredduringthetaxableyearincarryingonanytradeorbusinesswhicharedeductibleundertheprovisionsof§162(a)oftheInternalRevenueCodeof1986;except,that:“(A)FortaxyearsbeginningafterDecember31,2021,thedeductionallowedfordomesticresearchandexperimentalexpendituresunder§174AoftheInternalRevenueCodeof1986shallbe:“(i)Chargedtothecapitalaccount;and
(i)Allowedasanamortizationdeductionofsuchexpendituresratablyoverthe5-yearperiodbeginningwiththemidpointofthetaxableyearinwhichsuchexpendituresarepaidorincurred;““(B)Notaxpayershallbeallowedtheelectiontoamendataxreturnpursuantto§174A()(1)oftheInternalRevenueCodeof1986;and“(C)Notaxpayershallbeallowedtheelectionunder§174A({)(2)ofthe
InternalRevenueCodeof1986.”.(B)Paragraph(2)isamendedtoreadasfollows:“(2)Interest.— Allinterestpaidoraccruedwithinthetaxableyearonindebtednesswhichisdeductibleundertheprovisionsof§ 163oftheInternalRevenueCodeof1986;except,that:
(A)Incomputingthelimitationonbusinessinterest,asallowedunder§163 of the InternalRevenue Code of 1986,“adjustedtaxableincome” means the adjustedtaxable
incomedeterminedunder§ 163(j)(8)(A)oftheInternalRevenueCodeof1986;except,that§
163()(8)(A)(W)shallnotapply;and“(B)“Floorplanfinancinginterest”,asdefinedunder§163())(9)oftheInternalRevenueCodeof1986,shallnotapply.”.
(C)Thelead-inlanguageofparagraph(4)(A)isamendedbystrikingthephrase“Lossessustainedduringthetaxableyearandnotcompensatedforbyinsuranceorotherwise:”andinsertingthephrase“Lossessustainedduringthetaxableyearandnot
compensatedforbyinsuranceorotherwisewhicharedeductibleundertheprovisionsof§ 165oftheIntemalRevenueCodeof1986:”initsplace.(D)Paragraph(7)isamendedtoreadasfollows:“(7\(A)Depreciation.— A reasonableallowanceforexhaustion,wear.andtearof
propertyusedinthetradeorbusiness,includingareasonableallowanceforobsolescence,andincludinginthecaseofnaturalresources,allowancesfordepletionaspermittedbyreasonablerulesthattheChiefFinancialOfficermaypromulgate.Thebasisuponwhichsuchallowancesaretobecomputedshallbethebasisprovidedforin§47-1811.04.“(B)Notwithstandingtheprovisionsofsubparagraph(A)ofthisparagraph:
“@i)Nodeductionshallbeallowedforthespecialdepreciationallowanceunder§168(k)oftheInternalRevenueCodeof1986:
ENROLLED ORIGINAL
“(ii)Thereshalllbeallowedasadeductionforthecostofpropertyelectedtobetreatedasnotchargeabletocapitalaccountunder§179oftheIntemalRevenueCodeof1986anamountofequaltothelesserof$25,000ortheactualcostofthepropertyfor
theyearthepropertyisplacedinservice;“(iii)Nodeductionshallbeallowedforthespecialdepreciationallowanceunder§168(n)oftheInternalRevenueCodeof1986;and“(iv)A depreciationdeductionmaybeallowedforaninvestorinasharedequityfinancingagreementasprovidedin§47-3507.
(E)Paragraph(8)isamendedbystrikingthephrase“Forpurposesofthissection,theterm“actuallypaid”,whenusedwithreferencetotheDistrictofColumbia,includescompensationwaivedunder§1-61.15.”andinsertingthephrase“Forpurposesofthissection,theterm“actuallypaid”,whenusedwithreferencetotheDistrictofColumbia,includescompensationwaivedunder§1-611.15,andnocharitablecontributionsmaybecarriedforwardunderthisparagraph.”initsplace.
(F)Paragraph(18)(A)isamendedbystrikingthephrase“section179oftheInternalRevenueCodeof1986”andinsertingthephrase“§179oftheInternalRevenueCodeof1986”initsplace.(G)Paragraph(20)isamendedfollows:(i)Thelead-inlanguageisamendedbystrikingthephrase“CapitalGains”andinsertingthephrase“QualifiedOpportunityFundCapitalGains”initsplace.(ii)Subparagraph(A)isamendedbystrikingthesemicolonand
insertingaperiodinitsplace.(iii)Subparagraph(B)isamendedasfollows:(1)Theexistingtextisdesignatedassub-subparagraph(i).
(ID)A newsub-subparagraph(ii)isaddedtoreadas
follows: “(ii)ForamountsinvestedinaQOFafterDecember31,2026,the
reductionofcapitalgainstaxliabilitythrougha10%step-upbasis,ifinvestedinaQOFfor5years,pursuantto§1400Z-2(b)oftheInternalRevenueCodeof1986,shallberealizedonlyifthetaxpayerinvestsinaQOFthatmeetsthecriteriasetforthinsubparagraph(D)ofthisparagraph,”.
(iv)Subparagraph(C)isamendedasfollows:(DTheexistingtextisdesignatedassub-subparagraph(i).(U1)A newsub-subparagraph(ii)isaddedtoreadasfollows:
‘(ii)ForamountsinvestedinaQOF afterDecember31,2026,the
abatementofcapitalgainstaxonaninvestmentofcapitalgainsheldinaQOF foratleast10
years,pursuantto § 1400Z-2(c)ofthe InternalRevenue Code of 1986,shallbe realizedonly if
thetaxpayerinvestsina QOF thatmeets thecriteriasetforthinsubparagraph(D) of this
paragraph.”
ENROLLED ORIGINAL
(3)Subsections(b),(b-1),(b-2),(b-3),and (b-4)arerepealed.
(4)Subsection(d)(6)isamended toreadas follows:
“(6)Expensesincurredtoproduceincomewhichiseitherexemptornotsubjectto
taxationunderthischapter.
(5)Subsection(e)isrepealed.
(c)A newsection47-1803.04isaddedtoreadasfollows:
“§ 47-1803.04.Gross income— Individual,estate,and trustdeductions.
“(a)Deductionsallowed— Generally.
“(1)Individuals.An individualisallowedeitherthestandarddeductionor
itemizeddeductions(includingtheadditionaldeductionssetforthinsubsection(e)of this
section,ifapplicable)assetforthinthissection.“(2)Estatesand Trusts.An estateor trustisallowedtheitemizeddeductions
(includingtheadditionaldeductionssetforthinsubsection(e)ofthis section,ifapplicable)and
any deductionsallowedunder § 47-1809.05.
“(b)Standarddeduction.Ifan individualelectsto claimthestandarddeductionon the
individual’sfederalincome taxreturn,theindividualmust claimthestandarddeductionas
definedin§ 47-1801.04(44),and no itemizeddeductionsand otheradditionstothestandard
deductionareallowed,exceptas otherwiseprovidedinthischapter.Ifan individualelectsto
claimany itemizeddeductionson theindividual’sfederalreturn,theindividualmust claimthe
itemizeddeductionsas allowedunderthissectionand thestandarddeductionisnotallowed.For
marriedindividualsordomesticpartners,ifthenetincomeofoneofthespousesorregistered
domesticpartnersisdeterminedby itemizingdeductionson a separatereturn,neitherof the
spousesorregistereddomesticpartnersisallowedthestandarddeduction.
“(c)Itemizeddeductions.
“(1)Exceptasotherwiseprovidedinthissection,incomputingnetincome,an
individual,estate,ortrustisallowedthefollowingdeductions:
“(A)AnydeductionallowedundertheInternalRevenueCodeof1986,
and tothesame extent,on a federalindividualor fiduciaryincome taxreturn;except,thata
deductionforstateor localtaxesunder § 164ofthe InternalRevenue Code of 1986 (exceptas
otherwiseprovidedinsubsection(d)(1)and (2)of thissection)isallowedwithoutregardtothe
applicablelimitationamountssetforthin§164(b)(6)oftheInternalRevenueCodeof1986.
*(2)(A)Inthecaseofan individualwhoseDistrictofColumbiaadjustedgross
income exceedstheapplicableamount, theamount of theitemizeddeductionsotherwise
allowableforthetaxableyearshallbe reducedby 5%of the excessof theDistrictof Columbia
adjustedgrossincomeovertheapplicableamount.
“(B)Forthepurposesofthisparagraph,theterm:
“(i)“Applicableamount”means$200,000($100,000,married
filingseparately);and “(ii)“Itemizeddeductions”doesnotincludethededuction:
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ENROLLED ORIGINAL
“(I)Under § 213ofthe InternalRevenue Code of 1986
relatingtoexpensessuchas,forexample,medicalordental;
“(IDForinvestmentinterest,asdefinedin§ 163(d)ofthe
InternalRevenue Code of 1986;and
“(IIDUnder§ 165(a)oftheInternalRevenueCodeof
1986,forcasualtyortheftlossesdescribedin§ 165(c)(2)and(3)oftheInternalRevenueCode
of 1986,or forlossesdescribedin§ 165(d)of theInternalRevenue Code of 1986.
“(C)Thissubsectionshallbeappliedaftertheapplicationofanyotherlimitationon theallowanceof any itemizeddeduction.
“(D) This subsectionshallnot applytoany estateortrust.
“(d)Deductionsnotallowed.No deductionsshallbe allowedforthefollowing:
(1)Incometaxes;
*(2)Franchisetaxesimposedbythischapter;
“(3)Scorporationincome.Anydeductionpassingtoastockholderinasmall
businesscorporationas definedin§ 1371of the InternalRevenue Code of 1954,making an
electionunder § 1372(a)ofthe InternalRevenue Code of 1954,or an S Corporationasdefinedin
§1361(a)and(b)oftheInternalRevenueCodeof1986,makinganelectionunder§1362(a)of
theInternalRevenue Code of 1986,thatisotherwisedeductibleundertheprovisionsof
subsection(a)ofthissectionandthatwas allowableindeterminingthetaxableincomeofthe
smallbusinesscorporationorSCorporationsubjecttotaxundertheprovisionsofsubchapterVII
ofthischapter;
“(4)Qualifiedbusinessincome.A deductionallowedunder§63(b)(3)or§ 199A
of theInternalRevenue Code of 1986;
“(5)Businessdeductions.Any deductionnotallowedunder§ 47-1803.03or in
excessofa deductionallowedbut limitedunder § 47-1803.03;
“(6)Qualifiedtips.Any deductionallowedforqualifiedtipsunder § 224ofthe
InternalRevenueCodeof1986;
“(7)Qualifiedovertimecompensation.A deductionallowedforqualified
overtimecompensationunder § 225 oftheInternalRevenue Code of 1986;
“(8)Personalcarloaninterest.Anydeductionforpersonalcarloaninterest
allowedunder§ 163(h)(4)oftheIntemalRevenueCodeof1986;and
“(9)Seniordeduction,Any deductionforan enhancedseniordeductionallowed
under§ 151(d)(5)(C)oftheIntemalRevenueCodeof1986.
“(e)Additionaldeductionsallowed.The followingadditionaldeductionsareallowedas
deductionsfromgrossincomeincomputingnetincomeofanyindividual,estate,ortrust,asthe
casemaybe:
“(1)Classroomteacherexpenses.
“(A)FortaxableyearsbeginningonorafterJanuary1,2006,anindividual
who has been a classroomteacherina publicschoolor publiccharterschoolintheDistrictof
Columbia fortheentireyearforwhich theindividualisfilingor fortheentireyear priortothe
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ENROLLED ORIGINAL
yearforwhich theindividualisfilingand isapproved forteachingby theDistrictof Columbia
PublicSchoolsmaydeductfromgrossincome:
“(i)Theamounttheindividualpaidduringtheyearforbasic
classroommaterialsand suppliesnecessaryforteaching:provided,thatthedeductionshallnot
exceed$500peryear,perindividual,whethertheindividualfilesindividuallyorjointly;and
“(i)The amount theindividualpaidduringtheyearas tuitionand
feesforpost-graduateeducation,professionaldevelopment,orstatelicensingexaminationand
testingrequiredfor,orrelatedto,improvingteachercredentialsormaintainingprofessional
certification:provided,thatthedeductionshallnotexceed$1,500peryear,perindividual,
whethertheindividualfilesindividuallyorjointly.
“(B)Thedeductionsundersubparagraph(A)ofthisparagraphshallnotbe
allowedtotheextentthesameexpenseswereclaimedbytheindividualincomputingfederal
adjustedgrossincomeforthesametaxableyearundertheInternalRevenueCode1986.
“(2)CapitalGainsfromaQualifiedOpportunityFund.Thecapitalgains
deductionforinvestinginaqualifiedopportunityfundinthesamemannerassetforthin§47-
1803.03(a)(20).
( Section47-1805.02isamendedasfollows:
(1)Paragraph(1)isamendedbystrikingthephrase“Everynonresidentofthe
Districtreceivingincome subjecttotaxpursuanttothischapterand everyresidentof theDistrict,
exceptafiduciary,whoisrequiredtofileafederalreturnundertheprovisionsof§ 6012ofthe
InternalRevenueCodeof1986.”andinsertingthephrase“Everyindividualhavingforthe
taxableyear,grossincomewhichequalsorexceedstheapplicablebasicstandarddeductionas
definedunder § 47-1801.04(3A).”initsplace.
(2)Paragraph(2)isamendedasfollows:
(A)Subparagraph(A)isamendedtoreadasfollows:
“(A)Everyfiduciaryofa trustthathasgrossincomeof $100ormorefor
thetaxableyear;and”,
(B)Subparagraph(B)isamendedtoreadasfollows:
“(B)Everyfiduciaryofanestatethathasgrossincomeof$1ormorefor
thetaxableyear.”.
(C)Subparagraphs(C)and(D)arerepealed.(g)Section47-1806.01isamendedbystrikingthephrase“inexcessofthepersonalexemptionsandcreditsfordependentsallowedby§47-1806.02and”andinsertingthephrase“inexcessof”initsplace.(h)Section47-1806.02isrepealed.(@Section47-1806.04isamendedasfollows:
(1)Subsection(¢)(1)isamendedasfollows:(A)Theexistingtextisdesignatedassubparagraph(A).
ENROLLED ORIGINAL
(B)Subparagraph(A)isamendedbystrikingthephrase“afterDecember31,1988,”andinsertingthephrase“afterDecember31,1988,butbeforeJanuary1,2025,”inits
place.
(C)A newsubparagraph(B)isaddedtoreadasfollows:
“(B)Ifareturnisfiledforafullcalendarorfiscalyearbeginningafter
December31,2025,anindividualwhoincurshouseholdanddependentcareservicesnecessary
toengageingainfulemploymentandwhoisalloweda creditunder§ 21oftheinternalRevenue
Codeof1986,shallbeallowed,againstthetaximposedbythischapterforthetaxableyear,an
amountequalto24.25%ofthecreditallowedunder§21oftheInternalRevenueCodeof1986,
regardlessoftheamountofthecreditactuallyusedtooffsetfederaltaxliability.”.
(2)Subsection(£)(1)isamendedasfollows:
(A)Subparagraph(B-2)isamendedbystrikingthefigure“85%”and
insertingthefigure“100%”initsplace.
(B)Subparagraph(B-3)isrepealed.
(j)Section47-1806.17isrevivedasofOctober1,2024,andamendedtoreadasfollows:
Ҥ47-1806.17.Childtaxcredit.
“(a)FortaxableyearsbeginningafterDecember31,2025,thereshallbeallowedacredit
againstthetaximposedbythischapterforeachqualifyingchildofthetaxpayerforwhichthe
taxpayerisallowedadeductionunder§151oftheInternalRevenueCodeof1986,
“(b)(1)Theamountofthecreditshalllbecalculatedasfollows:
“(A)ForthetaxableyearbeginningJanuary1,2026,$1,000foreach
qualifyingchildwhohasnotreachedtheageof18yearsbyDecember31,2025;and
“(B)FortaxableyearsbeginningafterDecember31,2026,$1,000for
cachqualifyingchildwhohasnotreachedtheageof18yearsbyDecember31ofthetaxable
year,increasedannuallypursuanttothecost-of-livingadjustment(iftheadjustmentdoes not
resultinamultipleof$5,roundeddowntothenextmultipleof$5).
*(2)Theamountofthecreditshallbereducedby$50foreach$1,000(orfraction
thereof)bywhichthetaxpayer'sadjustedgrossincomeexceedsthethresholdamount;except,
thatthereductionscannotreducethecreditbelowzero.
“(3)Inthecaseofareturnmadeforafractionalpartofa taxableyear,thecredit
allowableunderthissectionshallbereducedtoanamountthatbearsthesameratiotothefull
creditprovidedasthenumberofmonthsintheperiodforwhichthereturnismadeto12months.
“(c)Thecreditclaimedunderthissectioninataxableyearmayexceedthetaxpayer'stax
liabilityunderthissubchapterforthattaxableyearandshallberefundabletothetaxpayer
claimingthecredit,Anyrefundspaidtothetaxpayerpursuanttothissectionshallnotbe
consideredincomeforthepurposeofdeterminingeligibilityfororbenefitamountofpublic
assistance.
“(d)Notwithstandinganyotherprovisionofthissection,ataxpayershallnotbeeligible
toreceiveacreditif:
ENROLLED ORIGINAL
“(1)Thetaxpayerdoesnotclaimthequalifyingchildasadependentonthe
taxpayer’sfederalandDistrictincometaxreturnsforthattaxableyear;or
“(2)ThetaxpayerwasnotaresidentoftheDistrictfortheentirecalendaryear
precedingtheyearinwhicha claimforthiscreditisfiled.
“(e)Forthepurposesofthissection,theterm:
“(1)“Baseyear”meansthecalendaryearbeginningJanuary1,2026,orthe
calendaryearbeginningonecalendaryearbeforethecalendaryearinwhichthenewdollar
amountof the creditamount or eligibilityincome thresholdamount shallbecome effective,
whicheverislater.
“(2)“Consumer PriceIndex”means theaverageof theConsumer PriceIndexfor
AllUrban Consumers fortheWashington-Arlington-AlexandriaDC-MD-VA-WV Metropolitan.
StatisticalArea (orsuch successormetropolitanstatisticalareathatincludestheDistrict),or any
successorindex,asofthecloseofthe12-monthperiodendingonJuly31ofsuchcalendaryear.
“(3)Cost-of-livingadjustment”meansanamount,foranycalendaryear,equalto
a dollaramount setforthinthissectionmultipliedby thedifferencebetween theConsumer Price
Indexfortheprecedingcalendaryearand theConsumer PriceIndex forthebase year,dividedby
theConsumer PriceIndexforthebase year.
“(4)“Dependent”shallhavethesamemeaningassetforthunder§ 152ofthe
InternalRevenue Code of 1986.
“(5)“Qualifyingchild”shallhavethesamemeaningassetforthunder§152(c)of
theInternalRevenue Code of 1986.
*(6)“Thresholdamount”meanstheadjustedgrossincomereportedonthe
taxpayer'sreturninthefollowingamounts:
“(A)ForthetaxableyearbeginningJanuary1,2026:
“(i)$55,000inthecaseofan unmarriedindividualfilingassingle,
headof household,or qualifyingwidow(er);
“(ii)$70,000 inthecaseof marriedindividualsorregistered
domesticpartnersfilingeitherjointlyorseparatelyonacombinedreturn:or
“(iii)$35,000inthecaseof an individualfilingasmarriedfiling
separately.
“(B)FortaxableyearsbeginningafterDecember31,2026,increased
annuallypursuanttothecost-of-livingadjustment(iftheadjustmentdoesnotresultinamultiple
of $100,rounded down tothenextmultipleof $100):
“(i)$55,000 inthecaseof an unmarriedindividualfilingas single,
headofhousehold,orqualifyingwidow(er);
“Gi)$70,000inthecaseof marriedindividualsorregistered
domesticpartnersfilingeitherjointlyor separatelyon a combined return;or
“(iii)$35,000 inthecaseof an individualfilingas marriedfiling
separately.”.
(k)Section47-1809.05isamended as follows:
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ENROLLED ORIGINAL
(1)Thelead-inlanguageisamendedbystrikingthephrase“exceptastothe
personalexemptionsandcreditsfordependents,andexceptthat:”andinsertingthephrase
“exceptthat:”initsplace.
(2)Paragraph(3)isamendedbystrikingthephrase“creatingthetrust;”and
insertingthephrase“creatingthetrust;and”initsplace.
(3)Paragraph(4)isrepealed.
(I)Section47-1811.04isamendedasfollows:
(1)Thelead-inlanguageisamendedbystrikingthephraseҤ47-1803.03(a)(7)
and(b-3)”and insertingthephrase“§§47-1803.03(a)(7)and47-1803.04(e)(3)”initsplace
(2)Newparagraphs(3)and(4)areaddedtoreadasfollows:
“(3)Theamountofspecialdepreciationallowanceundersection168(n)ofthe
InternalRevenueCodeof1986;and”
“(4)A depreciationdeductionmaybeallowedforaninvestorinasharedequity
financingagreementasprovidedin§47-3507.”.
(m)Section47-1812.08isamendedasfollows:
(J)Subsection(a)isamendedasfollows:
(A)Strikethephrase“theCounciloftheDistrictofColumbia”andinsert
thephrase“theChiefFinancialOfficer”initsplace.
(B)Strikethephrase“theMayor”bothtimesitappearsandinsertthe
phrase“theChiefFinancialOfficer”initsplace.
(C)Strikethephrase“5%of”andinsertthephrase“thehighestapplicable
rateoftaxsetforthin§47-1806.03appliedto”initsplace.
(2)Subsection(b)isamendedasfollows:
(A)Paragraph(1)isamendedbystrikingthephrase“theMayor”and
insertingthephrase“theChiefFinancialOfficer”initsplace
(B)Paragraph(1A)isamendedtoreadasfollows:
“(1A)Forthepurposesofthissubsection,theterms“allowance”and
“exemption”shallhavethesamemeaning.”initsplace,
(C)Paragraph(2)isamendedasfollows:
(i)Thelead-inlanguageofsubparagraph(D)isamendedby
strikingthephrase“TheCounciloftheDistrictofColumbia”andinsertingthephrase“The
ChiefFinancialOfficer”initsplace.
(ii)Subparagraph(E)isrepealed.
(3)Subsection(c)(2)isamendedbystrikingthephrase“theCouncilofthe
DistrictofColumbia”andinsertingthephrase“theChiefFinancialOfficer”initsplace.
(4)Subsection(¢)isamendedasfollows:
(A)Paragraph(J)isamendedbystrikingthephrase“theMayor”and
insertingthephrase“theChiefFinancialOfficer”initsplace.(B)Paragraph(5)isamendedbystrikingthephrase“theMayor”and
insertingthephrase“theChiefFinancialOfficer”initsplace.
i
ENROLLED ORIGINAL
(C)Paragraph(7)isamendedbystrikingthephrase“theCounciloftheDistrictofColumbia”andinsertingthephrase“theChiefFinancialOfficer”initsplace.(D)A newparagraph(8A)isaddedtoreadasfollows:“(8A)ForperiodsbeginningafterDecember31,2017,anemployeeshalllbeentitledtoadditionalwithholdingexemptionsunderthissubsectionwithrespecttopaymentofwagesequaltotheemployee'sestimateditemizeddeductionsdividedbyanamountpromulgatedbytheChiefFinancialOfficer.”.(E)Thelead-inlanguageofparagraph(9)isamendedbystrikingthephrase“theMayor”andinsertingthephrase“theChiefFinancialOfficer”initsplace.(F)Paragraph(10)isamendedbystrikingthephrase“theMayor”both
timesitappearsandinsertingthephrase“theChiefFinancialOfficer”initsplace.(5)Subsection(£)(2)isamendedbystrikingthephrase“theMayor”whereveritappearsandinsertingthephrase“theChiefFinancialOfficer”initsplace.(6)Subsection(g)isamendedasfollows:(A)Paragraph(1)(B)isamendedbystrikingthephrase“theCouncilofthe
DistrictofColumbia”andinsertingthephrase“theChiefFinancialOfficer”initsplace.(B)Paragraph(2)isamendedbystrikingthephrase“TheCounciloftheDistrictofColumbia”andinsertingthephrase“TheChiefFinancialOfficer”initsplace.(7)Subsection(h)isamendedbystrikingthephrase“theMayor”andinsertingthephrase“theChiefFinancialOfficer”initsplace.(8)Subsection(i)isamendedasfollows:(A)Paragraph(2)(D)isamendedbystrikingthephrase“theCouncilof
theDistrictofColumbia”andinsertingthephrase“theChiefFinancialOfficer”initsplace.(B)Paragraph(4)isamendedbystrikingthephrase“theMayor”and
insertingthephrase“theChiefFinancialOfficer”initsplace.(C)Paragraph(5)isamendedbystrikingthephrase“theCounciloftheDistrictofColumbia”andinsertingthephrase“theChiefFinancialOfficer”initsplace.
(D)Thelead-inlanguageofparagraph(6)isamendedbystrikingthephrase“theCounciloftheDistrictofColumbia”andinsertingthephrase“theChiefFinancialOfficer”initsplace.
(E)Paragraph(7)isamendedbystrikingthephrase“TheCounciloftheDistrictofColumbia”andinsertingthephrase“TheChiefFinancialOfficer”initsplace.
(9)Subsection(K)isamendedbystrikingthephrase“ofoneandonehalfpercentpermonth”andinsertingthephrase“setforthin§47-4201”initsplace.
Sec.3.ConformingAmendments.(a)TheChildTaxCreditAmendmentActof2025,enactedonSeptember4,2025(D.C.
Act26-148;72DCR9825),isrepealed.(b)TheChildTaxCreditEmergencyAmendmentActof2025,efllectiveSeptember3,2025(D.C.Act26-146;72DCR9623),isrepealed.
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ENROLLED ORIGINAL
(c)The ChildTax CreditCongressionalReview Emergency Amendment Act of 2025,
passedon emergency basison November 4,2025 (EnrolledversionofBill 26-450),isrepealed.
Sec.4.Applicability.Exceptasotherwiseprovided,thisactshallapplyasofJanuary1,2025.
Sec.5.Fiscalimpactstatement.
TheCounciladoptsthefiscalimpactstatementoftheChiefFinancialOfficerasthefiscal
impactstatementrequiredbysection4aoftheGeneralLegislativeProceduresActof1975,
approvedOctober16,2006(120Stat.2038;D.C.Code§ 1-301.47a).
Sec.6.Effectivedate.ThisactshalltakeeffectfollowingapprovalbytheMayor(orintheeventofvetobytheMayor,actionbytheCounciltooverridetheveto),andshallremainineffectfornolongerthan
90days,asprovidedforemergencyactsoftheCounciloftheDistrictofColumbiainsection412(a)oftheDistrictofColumbiaHomeRuleAct,approvedDecember24,1973(87Stat.788;D.C.OfficialCode§1-204.12(a)).
Chairman
Councilof theDistrictof Columbia,
UNSIGNED
Mayor
DistrictofColumbiaNOVEMBER25, 2025
COUNCILOFTHE DISTRICTOF COLUMBIA.
WASHINGTON,DC,20004
[]ITEMONCONSENTCALENDAR
[x]ACTION FinalReading
[x1VoTEDATE November4,2025
[x1voicevore ‘Approved
RECORDEDVOTEONREQUEST
ABSENT
[]ROLLCALLVOTE-Resut
‘CouncMember[Aye[Nay[NV[AB[Rec|CounciMember[Aye[Nay|NV[AB|Rec|CounciiMember[Aye|Nay
{ChairmanMendelson)X Henderson x Pinto x
Allen x LewisGeorge_| x R.White x
Bonds x McDutfie x T.White x
Felder x Nadeau x
Frumin x Parker x
X-IndicateVote ‘ABAbsent NV--Present,NotVoting Rec-Recused
CERTIFICATIONRECORD
aa FeSecretaryTotheCouncl