Congress is blocking a tax law that the DC Council passed in December 2025. Here's what happened: When Congress passed a major federal tax bill (called the One Big Beautiful Bill Act), DC's tax system automatically adopted those federal changes—this is called "rolling conformity." The federal bill included things like a bigger standard tax deduction, exemptions for tip income, and new depreciation rules for buildings. But then the DC Council passed its own law that undid those changes, essentially disconnecting DC's taxes from the federal ones. The DC Council also made other changes, like restoring a child tax credit. This joint resolution says "no"—it cancels the DC Council's law and puts DC back to following the federal tax changes that came from Congress's bill. In practical terms, DC residents and businesses will now have the higher standard deduction, won't pay taxes on tips, and will get the new depreciation benefits that Congress intended, rather than the tax rules the DC Council tried to create.

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.

Gill, Brandon

<p>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.</p><p>As background, DC automatically adopts, as DC law, changes to federal tax law (known as rolling conformity). Upon enactment of <a href="https://www.congress.gov/bill/119th-congress/house-bill/1?s=7&amp;r=1">H.R.1</a> (commonly known as the&nbsp;One Big Beautiful Bill Act),&nbsp;its tax provisions became DC law, including provisions that increase the standard tax deduction,&nbsp;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&nbsp;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.</p>