The D.C. Income and Franchise Tax Conformity and Revision Temporary Amendment Act of 2025 proposes significant amendments to Chapter 18 of Title 47 of the District of Columbia Official Code, focusing on individual, estate, and trust deductions. The bill introduces a basic standard deduction set at $15,000 for single filers, $22,500 for heads of household, and $30,000 for married couples filing jointly for the taxable year ending December 31, 2025, with provisions for annual cost-of-living adjustments starting in 2026. It also revives the child tax credit, allowing a $1,000 credit per qualifying child, and makes adjustments based on income thresholds and cost-of-living increases. Additionally, the bill deletes previous section designations for standard deductions and introduces new definitions and calculations for tax credits and deductions.

Moreover, the bill centralizes tax administration by replacing references to the "Mayor" and "Council of the District of Columbia" with "Chief Financial Officer," thereby streamlining authority in tax matters. It modifies the definition of "actually paid" to prevent the carryforward of charitable contributions and changes "Capital Gains" to "Qualified Opportunity Fund Capital Gains," introducing new stipulations for tax liability reductions related to investments in Qualified Opportunity Funds after December 31, 2026. The bill also repeals certain sections of previous budget support acts and establishes that it will apply starting January 1, 2025, with a process for approval and potential expiration after 225 days.