The D.C. Income and Franchise Tax Conformity and Revision Emergency Amendment Act of 2025 seeks to update the District of Columbia's tax code by amending Chapter 18 of Title 47 to decouple from certain provisions of the Internal Revenue Code of 1986. Key changes include the establishment of a new section for individual, estate, and trust deductions, along with revised standard deduction amounts for the 2025 tax year: $15,000 for single filers, $22,500 for heads of household, and $30,000 for married couples filing jointly. These amounts will be adjusted annually for inflation in subsequent years. The bill also introduces technical changes, such as the repeal of specific sections and new definitions regarding deductions, ensuring clarity in the treatment of business expenses and income deductions.

Furthermore, the bill introduces a child tax credit of $1,000 per qualifying child starting in 2026, along with deductions for classroom teacher expenses and capital gains from qualified opportunity funds. It modifies existing provisions related to personal exemptions and credits for dependents, and replaces the previous language regarding filing requirements for residents and nonresidents with a new definition based on gross income thresholds. The Chief Financial Officer is designated as the authority for various tax functions, previously assigned to the Mayor or the Council. The act is set to take effect on January 1, 2025, following approval by the Mayor or the Council.