Bill > B26-0458

This bill amends the District of Columbia's income and franchise tax code for the 2025 tax year, making several significant changes to how taxes are calculated and what deductions are allowed. The bill introduces a new "basic standard deduction" for different filing statuses, with amounts ranging from $15,000 for single filers to $30,000 for married couples filing jointly, and provides for annual cost-of-living adjustments. It modifies how standard and itemized deductions are calculated, eliminates certain federal tax code provisions, and reinstates a child tax credit for taxable years beginning after December 31, 2025. The child tax credit will provide $1,000 per qualifying child under 18, with the amount subject to reduction based on the taxpayer's adjusted gross income and potential annual adjustments. The bill also changes how certain business expenses, depreciation, and capital gains are treated for tax purposes, and removes previous personal exemption provisions. Additionally, the bill repeals previous versions of the Child Tax Credit Amendment Acts and will apply starting January 1, 2025, with the act itself expiring 225 days after taking effect.

https://lims.dccouncil.gov/Legislation/B26-0458