The D.C. Income and Franchise Tax Conformity and Revision Temporary Amendment Act of 2025 proposes significant updates to the District of Columbia's tax code, particularly focusing on individual, estate, and trust deductions. A new section will establish a basic standard deduction starting at $15,000 for single filers, with annual cost-of-living adjustments. The bill also clarifies the treatment of various deductions, including business expenses, interest, and depreciation, while repealing outdated provisions. Additionally, it introduces new requirements for taxpayers regarding the inclusion of specific income deductions and exclusions, particularly for those who do not itemize deductions.

Further amendments include the introduction of additional deductions for classroom teacher expenses, capital gains from qualified opportunity funds, and a new child tax credit of $1,000 per qualifying child, effective in 2026. The bill revises filing requirements for non-residents and fiduciaries and adjusts income thresholds and definitions related to tax credits. Notably, it repeals previous child tax credit amendments and aligns definitions of terms like "dependent" and "qualifying child" with the Internal Revenue Code. The act is set to take effect on January 1, 2025, following the Mayor's approval and a congressional review period.