The D.C. Income and Franchise Tax Conformity and Revision Temporary Amendment Act of 2025 proposes significant changes to the District's tax code, particularly in the area of deductions for individuals, estates, and trusts. The bill introduces a new section that establishes a basic standard deduction starting at $15,000 for single filers, with annual adjustments for inflation. It also modifies existing definitions related to deductions, including those for research and experimental expenditures, interest deductions, and the standard deduction for married individuals or registered domestic partners. Additionally, the legislation allows eligible classroom teachers to deduct up to $500 for classroom materials and up to $1,500 for tuition and professional development, while also introducing a capital gains deduction for investments in qualified opportunity funds.

Moreover, the bill includes technical amendments such as updating section headings and repealing outdated provisions, including those concerning personal exemptions and credits for dependents. It clarifies the treatment of income deductions and revises filing requirements for fiduciaries of trusts and estates. The act establishes a new tax credit for individuals with household and dependent care expenses, effective for returns filed after December 31, 2025. The proposed changes are set to take effect from January 1, 2025, following the Mayor's approval and a congressional review period, with a provision for expiration after 225 days.