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.
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.
Plain Language Summary
# Summary of HJRES 142 **What It Does:** This bill nullifies a tax law that Washington, D.C.'s city council passed in December 2025. The D.C. law had "decoupled" or separated D.C.'s tax code from certain federal tax changes that automatically became D.C. law. By passing this resolution, Congress is essentially overriding the D.C. council's decision and restoring those federal tax provisions in D.C., including a higher standard tax deduction, an exemption for tipped wages from income tax, and accelerated depreciation rules for commercial properties. **Who It Affects:** D.C. residents and businesses are the primary groups affected. The bill impacts individual taxpayers (especially those who rely on tips), businesses that own nonresidential real estate, and the D.C.
government's tax revenue. This is a dispute between Congress and D.C.'s local government over how much D.C. can control its own tax policy. **Key Context:** D.C. normally must automatically adopt federal tax law changes. Congress used this joint resolution—a tool available only in Congress—to override D.C.'s attempt to opt out of certain federal tax provisions that came from a broader federal tax bill (H.R. 1). The bill has already been signed into law.
CRS Official Summary
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.
Latest Action
Became Public Law No: 119-78.