# District of Columbia B26-0458: D.C. Income and Franchise Tax Conformity and Revision Temporary Amendment Act of 2025 District of Columbia B26-0458, D.C. Income and Franchise Tax Conformity and Revision Temporary Amendment Act of 2025, is a Council Period 26 (2025-2026) House bill sponsored by Phil Mendelson (Democratic); status became law, last action 2026-02-20 (Law L26-0089, Effective from Feb 12, 2026 Published in DC Register Vol 73 and Page 002114, Expires on Sep 25, 2026); PRIA reads it as touching household money (as of 2026-11-04). - Canonical: https://policyrisk.com/state-bill/DC-B26-0458-26 - As of: 2026-11-04 - Plain-text twin of the page above; the HTML and this file carry the same facts. ## Facts - Bill: District of Columbia B26-0458 - State: District of Columbia - Session: Council Period 26 (2025-2026) - Title: D.C. Income and Franchise Tax Conformity and Revision Temporary Amendment Act of 2025 - Status: became law - Chamber: House - Introduced: 2025-11-03 - Last action: 2026-02-20, Law L26-0089, Effective from Feb 12, 2026 Published in DC Register Vol 73 and Page 002114, Expires on Sep 25, 2026 - Sponsor: Phil Mendelson (Democratic) - Cosponsors: 0 - Touches household money: yes - Roll calls: 2 (26 yes, 0 no in all) - Economic provisions PRIA read: 10 ## Summary No summary available. ## Bill overview: provisions PRIA read - Credit for child and dependent care: benefit, high. Beginning January 1, 2026, DC gives a nonrefundable credit equal to 24.25% of your federal child and dependent care credit. DC bases the amount on the credit allowed under federal law, even if you used none of it on your federal return. A related factor in this section changes from 85% to 100% star… - Full SALT deduction for DC taxes: benefit, high. For DC tax, you can deduct all state and local taxes that qualify under federal law. The federal SALT cap does not limit the DC deduction. - Refundable child tax credit starts 2026: benefit, high. Starting January 1, 2026, DC provides a refundable $1,000 credit per qualifying child. The credit is cut by $50 for each $1,000 (or part) your AGI exceeds $55,000 (single or head of household), $70,000 (joint or combined), or $35,000 (separate). After 2026, the per‑child amount is adjusted for infl… - Teachers can deduct classroom costs: benefit, high. Classroom teachers in DC public or public charter schools can deduct up to $500 for supplies. They can also deduct up to $1,500 for postgraduate tuition, professional development, or licensing exam fees. You must have taught the whole year (or the whole prior year) and be approved by DCPS. You cann… - Extra depreciation for businesses and investors: benefit, high. Starting January 1, 2025, DC allows the special depreciation allowance under IRC §168(n). DC also allows a depreciation deduction for investors in shared equity financing agreements as provided in DC law. These deductions can lower taxable income for eligible businesses and investors. - Some DC tax deductions now disallowed: cost, medium. DC lists deductions you cannot use to cut your DC tax. Disallowed items include income and franchise taxes, certain S‑corp pass‑through deductions, qualified business income under §199A, business deductions beyond DC limits, qualified tips, qualified overtime pay, personal car loan interest, and an… - New standard deduction and filing rules: mixed, high. For 2025, DC sets a basic standard deduction of $15,000 (single or separate), $22,500 (head of household), and $30,000 (joint/combined or surviving spouse). DC also adds the federal additional standard deduction on top of these amounts. Personal exemptions are repealed. If you take the federal stan… - New limits and breaks for Opportunity Funds: mixed, medium. DC allows a capital gains deduction for investments in Qualified Opportunity Funds under DC rules. For amounts you invest after December 31, 2026, DC may deny the federal 10% basis step‑up and the 10‑year gain break unless the fund meets DC criteria. Starting January 1, 2027, DC applies its own con… - This tax law is temporary: mixed, medium. The law takes effect after the Mayor approves it and after a 30‑day congressional review. It expires 225 days after it starts. Rules tied to specific tax years apply as stated while the law is in force. - CFO sets withholding; extra exemptions allowed: mixed, low. The Chief Financial Officer now runs DC withholding rules. The withholding formula references the highest DC tax rate instead of a fixed 5%. Employees can claim extra withholding exemptions equal to estimated itemized deductions divided by a CFO‑set number. Penalty interest now uses the rate in §47… ## Sponsors and cosponsors - Sponsor: Phil Mendelson (Democratic), House ## Roll call votes | Date | Chamber | Motion | Result | Yes | No | Other | | --- | --- | --- | --- | --- | --- | --- | | 2025-12-02 | House | Final Reading, CC | pass | 13 | 0 | | | 2025-11-04 | House | First Reading | pass | 13 | 0 | | ## Actions (10) - 2026-02-20: Law L26-0089, Effective from Feb 12, 2026 Published in DC Register Vol 73 and Page 002114, Expires on Sep 25, 2026 (House) - 2026-01-02: Act A26-0217 Published in DC Register Vol 73 and Page 000009 (House) - 2025-12-30: Transmitted to Congress (House) - 2025-12-22: Returned from Mayor (House) - 2025-12-20: Enacted without Mayor's Signature with Act Number A26-0217 (House) - 2025-12-12: Transmitted to Mayor, Response Due on Dec 29, 2025 (House) - 2025-12-02: Legislative Meeting (House) - 2025-11-04: Legislative Meeting (House) - 2025-11-04: Retained by the Council (House) - 2025-11-03: B26-0458 Introduced by Chairman Mendelson at Office of the Secretary (House) ## Bill text - Enrollment, 2025-12-02: [PDF](https://lims.dccouncil.gov/downloads/LIMS/60659/Meeting2/Enrollment/B26-0458-Enrollment1.pdf?Id=229081) - Engrossment, 2025-11-04: [PDF](https://lims.dccouncil.gov/downloads/LIMS/60659/Meeting1/Engrossment/B26-0458-Engrossment1.pdf?Id=228333) - Introduced, 2025-11-03: [PDF](https://lims.dccouncil.gov/downloads/LIMS/60659/Introduction/B26-0458-Introduction.pdf?Id=226373) ## Related bills - B26-0047: Funeral Directors Licensing Reform Amendment Act of 2025 (signed) - B26-0785: Peer-to-Peer Car Sharing Rental Vehicle Sales Tax Clarification Emergency Amendment Act of 2026 (signed) - B26-0663: Fiscal Year 2026 Revised Local Budget Temporary Act of 2026 (signed) - B26-0181: Short-Term Disability Insurance Benefit Protection Clarification Amendment Act of 2025 (signed) - B26-0735: Special Education for Young Adults in the Custody of the Department of Corrections Temporary Amendment Act of 2026 (signed) - B26-0760: Medical Cannabis Licensing and Unlicensed Establishment Enforcement Clarification Temporary Amendment Act of 2026 (signed) ## Sources - [Enrollment (PDF)](https://lims.dccouncil.gov/downloads/LIMS/60659/Meeting2/Enrollment/B26-0458-Enrollment1.pdf?Id=229081) - [Engrossment (PDF)](https://lims.dccouncil.gov/downloads/LIMS/60659/Meeting1/Engrossment/B26-0458-Engrossment1.pdf?Id=228333) - [Introduced (PDF)](https://lims.dccouncil.gov/downloads/LIMS/60659/Introduction/B26-0458-Introduction.pdf?Id=226373) ## Related - [B26-0047: Funeral Directors Licensing Reform Amendment Act of 2025](https://policyrisk.com/state-bill/DC-B26-0047-26) - [B26-0785: Peer-to-Peer Car Sharing Rental Vehicle Sales Tax Clarification Emergency Amend…](https://policyrisk.com/state-bill/DC-B26-0785-26) - [B26-0663: Fiscal Year 2026 Revised Local Budget Temporary Act of 2026](https://policyrisk.com/state-bill/DC-B26-0663-26) - [B26-0181: Short-Term Disability Insurance Benefit Protection Clarification Amendment Act…](https://policyrisk.com/state-bill/DC-B26-0181-26) - [B26-0735: Special Education for Young Adults in the Custody of the Department of Correcti…](https://policyrisk.com/state-bill/DC-B26-0735-26) - [B26-0760: Medical Cannabis Licensing and Unlicensed Establishment Enforcement Clarificati…](https://policyrisk.com/state-bill/DC-B26-0760-26) - [District of Columbia bills](https://policyrisk.com/states/district-of-columbia/bills) - [District of Columbia state hub](https://policyrisk.com/states/district-of-columbia) - [All state legislation](https://policyrisk.com/state-bills) Source: PRIA, https://policyrisk.com/state-bill/DC-B26-0458-26 (as of 2026-11-04).