Disapproving the action of the District of Columbia Council in approving the D.C. Income and Franchise Tax Conformity and Revision Temporary Amendment Act of 2025.

This joint resolution nullifies legislation enacted by the Council of the District of Columbia (DC) on December 20, 2025, titled DC Income and Franchise Tax Conformity and Revision Temporary Amendment Act of 2025. The nullification reinstates certain DC tax code provisions that were in place before the enactment of the DC legislation and that address, among other things, the standard tax deduction, taxation of tipped wages, and depreciation of qualified property.

As background, DC automatically adopts, as DC law, changes to federal tax law (known as rolling conformity). Upon enactment of H.R.1 (commonly known as the One Big Beautiful Bill Act), its tax provisions became DC law, including provisions that increase the standard tax deduction, exempt tips from taxable income, and provide for an elective 100% depreciation allowance for nonresidential real property. The DC legislation subsequently decoupled the DC tax code from these and other tax provisions that originated in H.R.1, and it amended several other provisions in the DC tax code, including restoring the DC child tax credit.

This joint resolution reinstates provisions of District of Columbia (DC) tax law to conform with federal tax law.

As background, DC generally automatically adopts changes to federal tax law (known as rolling conformity). Therefore, upon enactment of the 2025 reconciliation act (commonly known as the One Big Beautiful Bill Act), many of its tax provisions became DC law. DC subsequently enacted its own legislation (the DC Income and Franchise Tax Conformity and Revision Temporary Amendment Act of 2025) that decoupled DC tax law from these federal provisions.

This joint resolution nullifies the DC legislation, thereby generally realigning DC tax law with the tax provisions of the 2025 reconciliation act.

Specifically, the joint resolution reinstates for DC provisions that

•    increase the higher basic standard deduction;
•    increase deductible charitable cash contributions (for taxpayers who take the standard deduction);
•    establish a $6,000 tax deduction for taxpayers 65 years and older;
•    allow a tax deduction of qualified tips, qualified overtime pay, and qualified car loan interest;
•    authorize an elective 100% depreciation allowance for nonresidential real property; and
•    authorize businesses to deduct 100% of research and experimental costs retroactive to tax year 2022.

The DC legislation also amended several other provisions of DC tax law, including restoring the DC child tax credit. The joint resolution negates these changes.