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ENROLLED ORIGINAL
AN ACT
ACT 26-217
IN THE COUNCIL OF DISTRICT OF COLUMBIA
DECEMBER 30, 2025
To amend, on a temporarybasis,certainprovisionsof Chapter 18ofTitle 47 of theDistrictof
Columbia OfficialCode so thattheyno longerconform tocorrespondingprovisionsof
theIntemalRevenue Code of 1986 and tomake othertechnicaland conforming changes.
BE IT ENACTED BY THE COUNCIL OF THE DISTRICT OF COLUMBIA, That this
actmay be citedas the“D.C. Income and FranchiseTax Conformity and RevisionTemporary
Amendment Act of 2025”.
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Personalexemptions.[Repealed]."”(b)Section47-1801.04isamendedasfollows:(1)A newparagraph(3A)isaddedtoreadasfollows:“@A)(A)“Basicstandarddeduction”means:
“(i)ForthetaxableyearendingDecember31,2025:“(DInthecaseofareturnfiledbyasingleindividualormarriedindividualfilingaseparatereturn,$15,000;“(IDInthecaseofareturnfiledbyaheadofhousehold,$22,500;and
“(INDInthecaseofareturnfiledbymarriedindividualsfilingajointreturn,separateonacombinedreturn,orasurvivingspouse,$30,000;and“(ii)FortaxableyearsbeginningafterDecember31,2025:
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ENROLLED ORIGINAL
“(1Inthecaseofa returnfiledbyasingleindividualormarriedindividualfilinga separatereturn,$15,000,increasedannuallypursuanttothecost-of-
livingadjustment(if theadjustmentdoes notresultina multipleof $50,rounded down tothe
nextmultipleof $50);
“(IDInthecaseofareturnfiledbyaheadof household,
$22,500,increasedannuallypursuanttothecost-of-livingadjustment(ifthe adjustmentdoes not
resultina multipleof $50,rounded down tothenextmultipleof $50);and
“(ILDInthecaseof a returnfiledby marriedindividuals
filingajointreturn,separateonacombinedreturn,orasurvivingspouse,$30,000increasedannuallypursuanttothecost-of-livingadjustment(iftheadjustmentdoesnotresultinamultipleof $50,rounded down tothenextmultipleof$50).
“(B)Forpurposesofthisparagraph,theterm“cost-of-livingadjustment”
shallhavethesame meaningassetforthinparagraph(11)ofthissection;except,thattheterm
“baseyear”shallmean thecalendaryearbeginningJanuary1,2025,or thecalendaryear
beginningone calendaryearbeforethecalendaryearinwhich thenew dollaramountof the basic
standarddeductionshallbecome effective,whicheverislater.”.
(2)Paragraph(11)(A)isamendedbystrikingthephrase“ofthissectionor§§47-
1806.02(f)(1)(A)and (i)”and insertingthephrase“ofthissection”initsplace.
(3)Paragraph(44)isamended as follows:
(A)Subparagraph(A)isamendedasfollows:
(i)Sub-subparagraph(iii)isamendedbystrikingthephrase“;or”
and insertinga semicoloninitsplace.
(ii)Sub-subparagraph(iv)isamendedtoreadasfollows:
“(iv)For taxableyearsbeginningafterDecember 31,2017, but
beforeJanuary1,2025,thestandarddeductionas prescribedinsection63(c)of the Internal
Revenue Code of 1986;or”
(iii)A newsub-subparagraph(v)isaddedtoreadasfollows:
“(v)For taxableyearsbeginningafterDecember 31,2024, theterm
“standarddeduction”means thesum of:
“() The basicstandarddeductionas definedinparagraph
(3A)ofthissection;and
“(IIThe additionalstandarddeductionas prescribedin
section63(c)(3)of theInternalRevenue Code of 1986.”.
(B)Subparagraph(B)isamendedasfollows:
(i)Sub-subparagraph(iii)isamendedbystrikingthephrase“;or”
and insertinga semicoloninitsplace.
(ii)Sub-subparagraph(iv)isamendedtoreadasfollows:
“(iv)FortaxableyearsbeginningafterDecember 31,2017, but
beforeJanuary 1,2025,thestandarddeductionas prescribedinsection63(c)of theInternal
Revenue Code of 1986;or”
ENROLLED ORIGINAL
(iii)A newsub-subparagraph(v)isaddedtoreadasfollows:“(v)FortaxableyearsbeginningafterDecember31,2024,theterm“standarddeduction”meansthesumof:
“())Thebasicstandarddeductionasdefinedinparagraph(3A)ofthissection;and
“(II)Theadditionalstandarddeductionasprescribedinsection63(c)(3)oftheInternalRevenueCodeof1986.”.
(C)Subparagraph(C)isamendedasfollows:(i)Thelead-inlanguageisamendedbystrikingthephrase“marriedindividuals”andinsertingthephrase“marriedindividualsorregistereddomesticpartners”initsplace,
(Gi)Sub-subparagraph(iii)isamendedbystrikingthephrase“;andinsertingasemicoloninitsplace.
(iii)Sub-subparagraph(jv)isamendedtoreadasfollows:“Giv)FortaxableyearsbeginningafterDecember31,2017,but
beforeJanuary1,2025,thestandarddeductionasprescribedinsection63(c)oftheInternalRevenueCodeof1986;or”
(iv)A newsub-sub-subparagraph(v)isaddedtoreadasfollows:“(v)FortaxableyearsbeginningafterDecember31,2024,theterm“standarddeduction”meansthesumof:
“())Thebasiestandarddeductionasdefinedinparagraph(BA)ofthissection;and
“(II)Theadditionalstandarddeductionasprescribedinsection63(c)(3)oftheIntemalRevenueCodeof1986.”.
(c)Section47-1803.02(a)isamendedbyaddingnewparagraphs(IB)and(1C)toreadasfollows:
“(1B)FortaxableyearsbeginningafterDecember31,2024,individuals,estates,andtrustswhodidnotelecttoitemizeshallincludeanyincomedeductedorotherwiseexcluded
pursuantto§170(p)oftheInternalRevenueCodeof1986forthattaxableyear.“(1C)FortaxableyearsbeginningafterDecember31,2024,individuals,estatesandtrustsshallincludeanyincomeorgainexcludedfromtheirfederalgrossincomepursuantto§1202(a)oftheIntemalRevenueCodeof1986forthattaxableyear.”.(@)Section47-1803.03isamendedasfollows:(1)Thesectionheadingisamendedtoreadasfollows:
“§47-1803.03.Grossincome— Corporation,financialinstitution,unincorporatedbusiness,andpartnershipdeductions.”.
(2)Subsection(a)isamendedasfollows:(A)Paragraph(1)isamendedtoreadasfollows:
ENROLLED ORIGINAL
“(1)Expenses.— Alltheordinaryandnecessaryexpensespaidorincurredduring,thetaxableyearincarryingonanytradeorbusinesswhicharedeductibleundertheprovisionsof§162(a)oftheInteralRevenueCodeof1986;except,that:
“(A)FortaxyearsbeginningafterDecember31,2021,thedeductionallowedfordomesticresearchandexperimentalexpendituresunder§174AoftheInternalRevenueCodeof1986shallbe:
“(i)Chargedtothecapitalaccount;andGi)Allowedasanamortizationdeductionofsuchexpendituresratablyoverthe5-yearperiodbeginningwiththemidpointofthetaxableyearinwhichsuchexpendituresarepaidorincurred;“(B)Notaxpayershallbeallowedtheelectiontoamendataxreturnpursuantto§174A(£)(L)oftheInternalRevenueCodeof1986;and
“(C)Notaxpayershallbeallowedtheelectionunder§174A(D(2)oftheInternalRevenueCodeof1986.”.
(B)Paragraph(2)isamendedtoreadasfollows:
(2)Interest.— Allinterestpaidoraccruedwithinthetaxableyearonindebtednesswhichisdeductibleundertheprovisionsof§ 163oftheInternalRevenueCodeof1986;except,that:
(A)Incomputingthelimitationonbusinessinterest,asallowedunder§163oftheInternalRevenueCodeof1986,“adjustedtaxableincome”meanstheadjustedtaxableincomedeterminedunder§163()(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§ 165oftheInternalRevenueCodeof1986:”initsplace.
(D)Paragraph(7)isamendedtoreadasfollows:“(7(A)Depreciation.— A reasonableallowanceforexhaustion,wear,andtearofpropertyusedinthetradeorbusiness,includingareasonableallowanceforobsolescence,and
includinginthecaseofnaturalresources,allowancesfordepletionaspermittedbyreasonablerulesthattheChiefFinancialOfficermaypromulgate.Thebasisuponwhichsuchallowancesaretobecomputedshallbethebasisprovidedforin§47-1811.04.
“(B)Notwithstandingtheprovisionsofsubparagraph(A)ofthisparagraph:
“@)Nodeductionshallbeallowedforthespecialdepreciationallowanceunder§168(k)oftheInternalRevenueCodeof1986:
ENROLLED ORIGINAL
“(ii)Thereshallbeallowedasadeductionforthecostofpropertyelectedtobetreatedasnotchargeabletocapitalaccountunder§179oftheIntemalRevenueCodeof1986anamountofequaltothelesserof$25,000ortheactualcostofthepropertyfortheyearthepropertyisplacedinservice;
“(iii)Nodeductionshallbeallowedforthespecialdepreciationallowanceunder§168(n)oftheIntemalRevenueCodeof1986;and“(iv)A depreciationdeductionmaybeallowedforaninvestorinasharedequityfinancingagreementasprovidedin§47-3507.
(B)Paragraph(8)isamendedbystrikingthephrase“Forpurposesofthis,section,theterm“actuallypaid”,whenusedwithreferencetotheDistrictofColumbia,includescompensationwaivedunder§1-611.15.”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)isamendedbystrikingthesemicolonandinsertingaperiodinitsplace.
(ii)Subparagraph(B)isamendedasfollows:
(1)Theexistingtextisdesignatedassub-subparagraph(i).(Il)A newsub-subparagraph(ii)isaddedtoreadas
follows:
“(ii)ForamountsinvestedinaQOFafterDecember31,2026,thereductionofcapitalgainstaxliabilitythrougha10%step-upbasis,ifinvestedinaQOFfor5years,pursuantto§1400Z-2(b)oftheInternalRevenueCodeof1986,shallberealizedonlyif,thetaxpayerinvestsinaQOFthatmeetsthecriteriasetforthinsubparagraph(D)ofthisparagraph.”.
(iv)Subparagraph(C)isamendedasfollows:
(1)Theexistingtextisdesignatedassub-subparagraph(i).(11)A newsub-subparagraph(i)isaddedtoreadas.follows:
“Gii)ForamountsinvestedinaQOFafterDecember31,2026,theabatementofcapitalgainstaxonaninvestmentofcapitalgainsheldinaQOFforatleast10years,pursuantto§1400Z-2(c)oftheInternalRevenueCodeof1986,shallberealizedonlyifthetaxpayerinvestsinaQOFthatmeetsthecriteriasetforthinsubparagraph(D)ofthisparagraph”.
ENROLLED ORIGINAL
(3)Subsections(b),(b-1),(b-2),(b-3),and (b-4)arerepealed.
(4)Subsection(d)(6)isamendedtoreadasfollows:
“(6)Expensesincurredtoproduceincomewhichiseitherexemptornotsubjectto
taxationunder thischapter.”.
(5)Subsection(e)isrepealed.
(e)A new section47-1803.04isadded toreadas follows:
“§ 47-1803.04.Gross income — Individual,estate,and trustdeductions.
“(a)Deductionsallowed— Generally.
“(1)Individuals.An individualisallowedeitherthestandarddeductionor
itemizeddeductions(includingtheadditionaldeductionssetforthinsubsection(e)ofthis
section,ifapplicable)assetforthinthissection.
“(2)Estatesand Trusts.An estateortrustisallowedtheitemizeddeductions
(includingtheadditionaldeductionssetforthinsubsection(e)ofthissection,ifapplicable)and
any deductionsallowedunder § 47-1809.05.
“(b)Standarddeduction.Ifan individualelectstoclaimthestandarddeductionon the
individual’sfederalincome taxreturn,the individualmust claimthestandarddeductionas
definedin§ 47-1801.04(44),and no itemizeddeductionsand otheradditionstothestandard
deductionareallowed,exceptasotherwiseprovidedinthischapter.Ifan individualelectsto
claimany itemizeddeductionson theindividual’sfederalreturn,theindividualmust claimthe
itemizeddeductionsas allowedunderthissectionand thestandarddeductionisnotallowed.For
marriedindividualsordomesticpartners,ifthenetincome of one of thespousesor registered
domesticpartnersisdeterminedby itemizingdeductionson a separatereturn,neitherof the
‘spousesorregistereddomesticpartnersisallowedthestandarddeduction.
“(c)Itemizeddeductions.
“(1)Exceptasotherwiseprovidedinthissection,incomputingnetincome,an
individual,estate,ortrustisallowedthefollowingdeductions:
“(A) Any deductionallowedundertheInternalRevenue Code of 1986,
and tothesame extent,on a federalindividualor fiduciaryincome taxreturn;except,thata
deductionforstateor localtaxesunder § 164of the InternalRevenue Code of 1986 (exceptas
otherwiseprovidedinsubsection(d)(1)and (2)of thissection)isallowed withoutregardtothe
applicablelimitationamounts setforthin § 164(b)(6)ofthe InternalRevenue Code of 1986.
“(2)(A)Inthecaseof an individualwhose Districtof Columbia adjustedgross
income exceedstheapplicableamount, theamount of theitemizeddeductionsotherwise
allowableforthetaxableyearshallbe reducedby 5% of theexcessof the Districtof Columbia
adjustedgrossincomeovertheapplicableamount.
“(B)Forthepurposesofthisparagraph,theterm:
“(i)“Applicableamount” means $200,000 ($100,000,married
filingseparately);and
“Gi“Itemizeddeductions”doesnotincludethededuction:
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ENROLLED ORIGINAL
“(1)Under§213oftheInternalRevenueCodeof1986relatingtoexpensessuchas,forexample,medicalordental;“(IDForinvestmentinterest,asdefinedin§163(d)oftheInternalRevenueCodeof1986;and
“(IID)Under§165(a)oftheInternalRevenueCodeof
1986,forcasualtyortheftlossesdescribedin§165(c)(2)and(3)oftheInternalRevenueCodeof1986,orforlossesdescribedin§165(d)oftheInternalRevenueCodeof1986.
“(C)Thissubsectionshallbeappliedaftertheapplicationofanyotherlimitationontheallowanceofanyitemizeddeduction.
“(D)Thissubsectionshallnotapplytoanyestateortrust.“(a)Deductionsnotallowed,Nodeductionsshallbeallowedforthefollowing:“(1)Incometaxes;
“(2)Franchisetaxesimposedbythischapter;“(3)Scorporationincome.Anydeductionpassingtoastockholderinasmallbusinesscorporationasdefinedin§1371oftheInternalRevenueCodeof1954,makinganelectionunder§ 1372(a)oftheInternalRevenueCodeof1954,oranSCorporationasdefinedin§1361(2)and(b)oftheInternalRevenueCodeof1986,makinganelectionunder§1362(a)oftheInternalRevenueCodeof1986,thatisotherwisedeductibleundertheprovisionsofsubsection(a)ofthissectionandthatwasallowableindeterminingthetaxableincomeofthesmallbusinesscorporationorSCorporationsubjecttotaxundertheprovisionsofsubchapterVIIofthischapter;
““(4)Qualifiedbusinessincome.A deductionallowedunder§63(b)(3)or§199AoftheInternalRevenueCodeof1986;(5)Businessdeductions,Anydeductionnotallowedunder§47-1803.03orinexcessofadeductionallowedbutlimitedunder§47-1803.03;
“(6)Qualifiedtips.Anydeductionallowedforqualifiedtipsunder§224oftheInternalRevenueCodeof1986;“(7)Qualifiedovertimecompensation,A deductionallowedforqualifiedovertimecompensationunder§225oftheInternalRevenueCodeof1986;
“(8)Personalcarloaninterest.Anydeductionforpersonalcarloaninterestallowedunder§163(h)(4)oftheInternalRevenueCodeof1986;and
“(9)Seniordeduction.Anydeductionforanenhancedseniordeductionallowedunder§151(d)(5)(C)oftheInternalRevenueCodeof1986.(©)Additionaldeductionsallowed.Thefollowingadditionaldeductionsareallowedasdeductionsfromgrossincomeincomputingnetincomeofanyindividual,estate,ortrust,asthecasemaybe:“(1)Classroomteacherexpenses.
“(A)FortaxableyearsbeginningonorafterJanuary1,2006,anindividualwhohasbeenaclassroomteacherinapublicschoolorpubliccharterschoolintheDistrictofColumbiafortheentireyearforwhichtheindividualisfilingorfortheentireyearpriortothe
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ENROLLED ORIGINAL
yearforwhich theindividualisfilingand isapprovedforteachingby theDistrictof Columbia
PublicSchoolsmay deductfrom grossincome:
“(i)Theamounttheindividualpaidduringtheyearforbasic
classroommaterialsandsuppliesnecessaryforteaching;provided,thatthedeductionshallnot
exceed $500 peryear,per individual,whethertheindividualfilesindividuallyorjointly;and
“(ii)The amount theindividualpaidduringtheyearas tuitionand
feesforpost-graduateeducation,professionaldevelopment,orstatelicensingexaminationand
testingrequiredfor,orrelatedto,improvingteachercredentialsormaintainingprofessional
certification;provided,thatthedeductionshallnotexceed $1,500 peryear,per individual,
whethertheindividualfilesindividuallyor jointly.
*(B)Thedeductionsundersubparagraph(A)ofthisparagraphshallnotbe
allowedtotheextentthesame expenseswere claimedby theindividualincomputing federal
adjustedgrossincomeforthesametaxableyearundertheInternalRevenueCode1986.
(2)CapitalGainsfromaQualifiedOpportunityFund.Thecapitalgains
deductionforinvestingina qualifiedopportunityfund inthesame manner assetforthin§ 47-
1803.03(a)(20).
(£)Section47-1805.02isamended as follows:
(J)Paragraph(1)isamendedbystrikingthephrase“Everynonresidentofthe
Districtreceivingincome subjecttotaxpursuanttothischapterand everyresidentof theDistrict,
excepta fiduciary,who isrequiredtofilea federalreturnunder theprovisionsof§ 6012of the
InternalRevenue Code of 1986.”and insertingthephrase“Every individualhavingforthe
taxableyear,grossincomewhichequalsorexceedstheapplicablebasicstandarddeductionasdefinedunder § 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)Section47-1806.01isamended by strikingthephrase“inexcessofthe personal
exemptionsand creditsfordependentsallowedby § 47-1806.02and” and insertingthephrase
“inexcessof”initsplace.
(h)Section47-1806.02isrepealed.
(i)Section47-1806.04isamended as follows:
(1)Subsection(c)(1)isamended as follows:
(A)Theexistingtextisdesignatedassubparagraph(A).
ENROLLED ORIGINAL
(B)Subparagraph(A)isamendedbystrikingthephrase“afterDecember
31, 1988,”and insertingthephrase“afterDecember 31, 1988,butbeforeJanuary 1,2025,”inits
place.
(C)A newsubparagraph(B)isaddedtoreadasfollows:
“(B)If a returnisfiledfora fullcalendaror fiscalyearbeginningafter
December 31,2025,an individualwho incurshouseholdand dependentcareservicesnecessary
toengage ingainfulemployment and who isalloweda creditunder § 21ofthe InternalRevenue
Code of 1986,shallbe allowed,againstthetaximposed by thischapterforthetaxableyear,an
amount equalto24.25% of thecreditallowedunder § 21 of theInternalRevenue Code of 1986,
regardlessof theamount of thecreditactuallyused tooffsetfederaltaxliability.”.
(2)Subsection(£)(1)isamendedasfollows:
(A)Subparagraph(B-2)isamendedbystrikingthefigure“85%”and
insertingthefigure“100%”initsplace.
(B)Subparagraph(B-3)isrepealed.
(j)Section47-1806.17isrevivedas of October 1,2024,and amended toreadas follows:
Ҥ 47-1806.17.Childtaxcredit.
“(a)For taxableyearsbeginningafterDecember 31,2025,thereshallbe allowedacredit
againstthetaximposedbythischapterforeachqualifyingchildofthetaxpayerforwhichthe
taxpayerisalloweda deductionunder§ 151ofthe InternalRevenue Code of 1986.
“(b)(1)The amountof the creditshallbe calculatedas follows:
“(A) For thetaxableyearbeginningJanuary 1,2026,$1,000foreach
qualifyingchildwho has notreachedtheage of 18 yearsby December 31,2025; and
“(B)FortaxableyearsbeginningafterDecember31,2026,$1,000for
eachqualifyingchildwhohasnotreachedtheageof18yearsbyDecember31ofthetaxable
year,increasedannuallypursuanttothecost-of-livingadjustment(if theadjustmentdoesnot
resultina multipleof $5,rounded down tothenextmultipleof $5).
“(2)The amountofthe creditshallbe reduced by $50 foreach $1,000(orfraction
thereof)bywhichthetaxpayer’sadjustedgrossincomeexceedsthethresholdamount;except,
thatthereductionscannotreducethecreditbelow zero.
“(3)Inthecaseof a returnmade fora fractionalpartofa taxableyear,thecredit
allowableunder thissectionshallbe reducedtoan amount thatbearsthesame ratiotothefull
creditprovidedas thenumber of months intheperiodforwhich thereturnismade to 12 months.
“(c)Thecreditclaimedunderthissectioninataxableyearmayexceedthetaxpayer'stax
liabilityunderthissubchapterforthattaxableyearandshallberefundabletothetaxpayer
claimingthecredit.Anyrefundspaidtothetaxpayerpursuanttothissectionshallnotbe
consideredincome forthepurposeof determining eligibilityforor benefitamountof public
assistance.
“(d)Notwithstandingany otherprovisionof thissection,a taxpayershallnot be eligible
toreceivea creditif:
ENROLLED ORIGINAL
(1)Thetaxpayerdoesnotclaimthequalifyingchildasadependentonthe
taxpayer’sfederaland Districtincometaxreturnsforthattaxableyear;or
“(2)ThetaxpayerwasnotaresidentoftheDistrictfortheentirecalendaryear
precedingtheyearinwhichaclaimforthiscreditisfiled.
“(e)Forthepurposesofthissection,theterm:
“(1)“Baseyear”meansthecalendaryearbeginningJanuary1,2026,orthe
calendaryearbeginningonecalendaryearbeforethecalendaryearinwhichthenewdollar
amountof thecreditamount oreligibilityincome thresholdamount shallbecome effective,
whicheverislater.
“(2)“Consumer PriceIndex”means theaverageof theConsumer PriceIndex for
AllUrban Consumers fortheWashington-Arlington-AlexandriaDC-MD-VA-WV Metropolitan
StatisticalArea (orsuch successormetropolitanstatisticalareathatincludestheDistrict),or any
successorindex,asofthecloseofthe 12-monthperiodendingonJuly31ofsuchcalendaryear.
“(3)Cost-of-livingadjustment”meansanamount,foranycalendaryear,equalto
a dollaramount setforthinthissectionmultipliedby thedifferencebetween theConsumer Price
IndexfortheprecedingcalendaryearandtheConsumerPriceIndexforthebaseyear,dividedby
theConsumerPriceIndexforthebaseyear.
“(4)“Dependent” shallhave thesame meaning as setforthunder § 152of the
InternalRevenue Code of 1986.
“(5)“Qualifyingchild”shallhavethesamemeaningassetforthunder§ 152(c)of
theInternalRevenue Code of 1986.
“(6)“Thresholdamount” means theadjustedgrossincome reportedon the
taxpayer’sreturninthefollowingamounts:
“(A)ForthetaxableyearbeginningJanuary1,2026:
“(i)$55,000 inthecaseof an unmarriedindividualfilingas single,
headofhousehold,orqualifyingwidow(er);
“(ii)$70,000 inthecaseof marriedindividualsor registered
domesticpartnersfilingeitherjointlyorseparatelyon2combinedreturn;or
“(iii)$35,000 inthecaseof an individualfilingasmarriedfiling
separately.
“(B) For taxableyearsbeginningafterDecember 31,2026, increased
annuallypursuanttothecost-of-livingadjustment(iftheadjustmentdoes notresultina multiple
of $100,rounded down tothenextmultipleof $100):
“(i)$55,000inthecaseof anunmarriedindividualfilingassingle,
headof household,or qualifyingwidow(er);
“(i)$70,000 inthecaseof marriedindividualsor registered
domesticpartnersfilingcitherjointlyorseparatelyonacombinedreturn;or
“(iii)$35,000 inthecaseof an individualfilingas marriedfiling
separately.”.
(k)Section47-1809.05isamendedasfollows:
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ENROLLED ORIGINAL
(1)Thelead-inlanguageisamendedbystrikingthephrase“exceptastothepersonalexemptionsandcreditsfordependents,andexceptthat:”andinsertingthephrase“exceptthat.”initsplace.
(2)Paragraph(3)isamendedbystrikingthephrase“creatingthetrust;”andinsertingthephrase“creatingthetrust;and”initsplace.(3)Paragraph(4)isrepealed.(1)Section47-1811.04isamendedasfollows:(1)Thelead-inlanguageisamendedbystrikingthephrase“§47-1803.03(a)(7)
and(b-3)"andinsertingthephrase“§§47-1803.03(a)(7)and47-1803.04(¢)(3)”initsplace(2)Newparagraphs(3)and(4)areaddedtoreadasfollows:“()Theamountofspecialdepreciationallowanceundersection168(n)oftheInternalRevenueCodeof1986;and*(4)A depreciationdeductionmaybeallowedforaninvestorinasharedequityfinancingagreementasprovidedin§47-3507.”.(m)Section47-1812.08isamendedasfollows:
(1)Subsection(a)isamendedasfollows:(A)Strikethephrase“theCounciloftheDistrictofColumbia”andinsertthephrase“theChiefFinancialOfficer”initsplace.
(B)Strikethephrase“theMayor”bothtimesitappearsandinsertthephrase“theChiefFinancialOfficer”initsplace.
(C)Strikethephrase“5%of”andinsertthephrase“thehighestapplicablerateoftaxsetforthin§47-1806.03appliedto”initsplace.(2)Subsection(6)isamendedasfollows:
(A)Paragraph(1)isamendedbystrikingthephrase“theMayor”andinsertingthephrase“theChiefFinancialOfficer”initsplace(B)Paragraph(1)isamendedtoreadasfollows:
“(1A)Forthepurposesofthissubsection,theterms“allowance”and“exemption”shallhavethesamemeaning.”.(C)Paragraph(2)isamendedasfollows:
(i)Thelead-inlanguageofsubparagraph(D)isamendedbystrikingthephrase“TheCounciloftheDistrictofColumbia”andinsertingthephrase“TheChiefFinancialOfficer”initsplace.
(ii)Subparagraph(B)isrepealed.(3)Subsection(c)(2)isamendedbystrikingthephrase“theCounciloftheDistrictofColumbia”andinsertingthephrase“theChiefFinancialOfficer”initsplace.(4)Subsection(e)isamendedasfollows:(A)Paragraph(1)isamendedbystrikingthephrase“theMayor”andinsertingthephrase“theChiefFinancialOfficer”initsplace.(B)Paragraph(5)isamendedbystrikingthephrase“theMayor”andinsertingthephrase“theChiefFinancialOfficer”initsplace.
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ENROLLED ORIGINAL
(C)Paragraph(7)isamendedbystrikingthephrase“theCouncilofthe
Districtof Columbia” and insertingthephrase“theChiefFinancialOfficer”in itsplace.
(D)A newparagraph(8A)isaddedtoreadasfollows:
“(8A)ForperiodsbeginningafterDecember31,2017,anemployeeshallbe
entitledtoadditionalwithholdingexemptionsunder thissubsectionwithrespecttopayment of
‘wagesequaltotheemployee’sestimateditemizeddeductionsdividedby an amount promulgated
by theChiefFinancialOfficer.”.
(E)Thelead-inlanguageofparagraph(9)isamendedbystrikingthe
phrase“theMayor”andinsertingthephrase“theChiefFinancialOfficer”initsplace.
(F)Paragraph(10)isamendedbystrikingthephrase“theMayor”both
timesitappearsandinsertingthephrase“theChiefFinancialOfficer”initsplace.
(5)Subsection(£)(2)isamendedbystrikingthephrase“theMayor”whereverit
appearsand insertingthephrase“theChiefFinancialOfficer”initsplace.
(6)Subsection(g)isamendedasfollows:
(A)Paragraph(1)(B)isamendedbystrikingthephrase“theCouncilofthe
Districtof Columbia” and insertingthephrase“theChiefFinancialOfficer”in itsplace.
(B)Paragraph(2)isamendedbystrikingthephrase“TheCouncilofthe
Districtof Columbia” and insertingthephrase“TheChiefFinancialOfficer”initsplace.
(7)Subsection(h)isamendedbystrikingthephrase“theMayor”andinserting
thephrase“theChiefFinancialOfficer”initsplace.
(8)Subsection(i)isamendedasfollows:
(A) Paragraph(2)(D)isamended by strikingthephrase“theCouncilof
theDistrictof Columbia” and insertingthephrase“theChiefFinancialOfficer”initsplace.
(B)Paragraph(4)isamendedbystrikingthephrase“theMayor”and
insertingthephrase“theChiefFinancialOfficer”initsplace.
(C)Paragraph(5)isamendedbystrikingthephrase“theCouncilofthe
Districtof Columbia” and insertingthephrase“theChiefFinancialOfficer”in itsplace.
(D)Thelead-inlanguageofparagraph(6)isamendedbystrikingthe
phrase“theCouncilof theDistrictof Columbia” and insertingthephrase“theChiefFinancial
Officer”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,effectiveSeptember3,2025(D.C.Act26-146;72DCR9623).isrepealed.
12
ENROLLED ORIGINAL.
(c)The ChildTax CreditCongressionalReview Emergency Amendment Act of 2025,
effectiveNovember 24,2025 (D.C.Act 26-210;72 DCR ),isrepealed.
Sec.4.Applicability.Exceptasotherwiseprovided,thisactshallapplyasofJanuary1,2025.
Sec.5,Fiscalimpactstatement.TheCounciladoptsthefiscalimpactstatementoftheChiefFinancialOfficerasthefiscalimpactstatementrequiredbysection4aoftheGeneralLegislativeProceduresActof1975,approvedOctober16,2006(120Stat.2038;D.C.Code§1-301.47a).
Sec.6.Effectivedate.(a)ThisactshalltakeeffectfollowingapprovalbytheMayor(orintheeventofvetobytheMayor,actionbytheCounciltooverridetheveto)anda30-dayperiodofcongressionalreviewasprovidedinsection602(c)(1)oftheDistrictofColumbiaHomeRuleAct,approvedDecember24,1973(87Stat.813;D.C.OfficialCode§ 1-206.02(c)(1)).
(b)Thisactshallexpireafter225daysofitshavingtakeneffect.
‘hairman
Councilofthe Districtof Columbia
UNSIGNED
Mayor
Districtof Columbia,December 19, 2025
13
COUNCILOF THEDISTRICTOF COLUMBIA.
WASHINGTON,DC,20004
[ITEMONCONSENTCALENDAR
[x1AcTION FirstReading
[x]voTEpate November4,2025
(x1VoIcevoTE Approved
RECORDEDVOTEONREQUEST
‘ABSENT
[]ROLLCALLVOTEResult
[CouncilMember|aye[Nay|nvAB[Rec|CounciMember[Aye[Nay|NV[AB[Rec]CouncitMember[Aye[Nay|NV[AB[Rec
ChairmanMendetson|X Henderson x Pinto x
Allen x LewisGeorge_| x R.White x
Bonds x McDuffie x T.White x
Felder x Nadeau x
Frumin x Parker x
X-IndicateVote AB~Absent INV.-Present,NotVoting Rec-Recused
CERTIFICATIONRECORD
‘SecretarytotheCouncil
DocketNo,826-0458
[DXTITEMON CONSENTCALENDAR
x? bs reDate
DACTION FinalReading,CC
DCVOTEDATE December2,2025
DgVoicevoTE ‘Approved
RECORDEDVOTEONREQUEST
‘ABSENT
[]ROLLCALLVOTE-Resutt
[counciiMember[aye[Nay|NV[AB[Rec|CouncitMember[Aye|Nay|NV[AB[Rec]CounciMember[Aye[Nay[NV[AB[Rec‘ChairmanMendelson)x Henderson|x Pinto
Alen x LewisGeorge|x R.White
Bonds x Mebute x T.White
Felder x Nadeau x
Frumin x Parker x
X-IndicateVoto AB Absent NY -Present,NotVoting Rec-Recused
(CERTIFICATIONRECORD
1y- 3 -e‘SecretarytotheCounal Date