This bill became law on 2026-02-18 as Public Law No. 119-78.
The summary below describes the bill at the version we last reviewed; the enacted text may differ.
This resolution blocks a District of Columbia tax law from taking effect. The D.C. Council passed the D.C. Income and Franchise Tax Conformity and Revision Temporary Amendment Act of 2025 on December 20, 2025, updating how the District's income and franchise (business) tax rules align with other tax law, and transmitted it to Congress on December 30, 2025 as required for D.C. laws under the Home Rule Act. Congress has the authority to review and reject D.C. Council actions during a transmittal period, and this resolution formally disapproves the local law, meaning it does not take effect. As a result, the District's prior income and franchise tax rules remain in place instead of the Council's updated version. The change affects D.C. residents who file local income taxes and businesses that pay the District's franchise tax.
Congressional Summary
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.
Legislative Subjects
Details
- Congress
- 119th
- Chamber
- House
- Status
- summarized
- Action
- Public Law
- Action Date
- 2026-02-18
- Date Added
- 2026-07-14
- Source
- Congress.gov →
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