Budget & Taxes (Business Taxes)

in committee · District of Columbia · Legislature Aug 4, 2026

B 26-0708: Combined Reporting Amendment Act of 2026

This bill updates the District of Columbia's corporate tax rules by switching from the Joyce method to the Finnigan method for calculating how much income from a group of related companies should be taxed in the city. The change directly affects businesses that operate as a single unit across multiple locations, requiring them to file a combined tax return and share joint liability for the tax owed. Key provisions redefine how a "unitary business" is identified and establish new rules for selecting which company in the group will file the return and how income is apportioned. Additionally, the legislation clarifies definitions for terms like "tax haven" and "nexus" to ensure the tax code accurately reflects modern business structures.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill closes tax loopholes by strengthening corporate tax rules and expanding joint liability, promoting fiscal responsibility.75% confidence

Sub-Topics Business Taxes

Track

in committee · District of Columbia · Legislature Mar 3, 2026

B 26-0445: Small Retailer Property Tax Credit Expansion Amendment Act of 2025

This bill increases the maximum annual property tax credit for small retail businesses in Washington, D.C., from $10,000 to $20,000, effective for tax years ending December 31, 2026, and beyond. It directly affects small retailers with under $3 million in annual revenue, including neighborhood restaurants and shops struggling with rising costs. The key mechanism raises the credit amount in the tax code, allowing these businesses to reduce their property taxes or rent paid for property taxes. The change is automatic and applies annually with cost-of-living adjustments, without creating new requirements for businesses.

Topics ✓ Budget & TaxesSupports Budget & TaxesExpands property tax credit for small retailers ($10k→$20k), providing direct tax relief to qualifying businesses under $3M revenue, aligning with tax relief indicators.90% confidence

Sub-Topics Business Taxes Tax Incentives

Track

signed · District of Columbia · Legislature Dec 5, 2025

B 26-0457: D.C. Income and Franchise Tax Conformity and Revision Emergency Amendment Act of 2025

This bill updates D.C.'s income tax code to align with recent federal tax changes, specifically adjusting standard deduction amounts for 2025 and establishing annual cost-of-living adjustments. It directly affects D.C. residents filing income taxes who claim standard deductions, setting new base amounts: $15,000 for single filers, $22,500 for heads of household, and $30,000 for joint filers (with future increases tied to inflation). The bill replaces outdated references to federal tax code sections with current standards and expands "married individuals" to include "registered domestic partners" for deduction eligibility. It takes effect immediately for the 2025 tax year.

Topics ✓ Budget & TaxesSupports Budget & TaxesIncreases standard deductions for D.C. residents (e.g., $30k joint filers), reducing taxable income and providing tax relief. Aligns with federal changes and includes inflation adjustments.90% confidence

Sub-Topics Business Taxes Income Tax

signed · District of Columbia · Legislature Nov 21, 2025

PR 26-0380: D.C. Income and Franchise Tax Conformity and Revision Emergency Declaration Resolution of 2025

This resolution declares an emergency to prevent the automatic adoption of federal tax changes from the "One Big Beautiful Bill Act" (H.R.1), which would reduce District of Columbia tax revenues by $94.4 million in 2025 and $657.8 million over five years. It directly affects D.C. government finances by allowing the Council to decouple from these federal provisions without waiting for full legislative review. The key mechanism is an immediate emergency declaration (taking effect instantly) to pause automatic conformity, giving the Council time to analyze the tax changes and develop necessary forms/guidance. This action specifically targets retroactive federal tax provisions, such as those eliminating taxes on overtime and tips, to avoid unintended revenue losses.

Topics ✓ Budget & TaxesSupports Budget & TaxesPrevents $94.4M annual revenue loss by decoupling D.C. from federal tax changes, protecting budget stability and fiscal management.95% confidence

Sub-Topics Business Taxes

in committee · District of Columbia · Legislature Mar 3, 2026

B 26-0487: Job Growth Incentive Amendment Act of 2025

The Job Growth Incentive Amendment Act of 2025 provides a tax credit to businesses that create at least 25 new jobs for District residents with wages at or above the average DC yearly wage between 2027 and 2032. The credit equals up to 100% of the business's FICA taxes for those employees and can be claimed for up to ten years if the jobs are retained beyond the first year. This updates the 2010 program, which required 10 jobs, a 120% wage threshold, and a 50% credit rate.

Topics ✓ Budget & TaxesSupports Budget & TaxesProvides tax credit covering 100% of FICA taxes for new jobs, reducing business tax burden to stimulate economic growth and job creation.95% confidence ✓ Labor & EmploymentSupports Labor & EmploymentRequires businesses to pay DC average wage for new jobs, incentivizing higher wages via tax credits while ensuring job retention.90% confidence

Sub-Topics Business Taxes Tax Incentives

Track

signed · District of Columbia · Legislature Feb 20, 2026

B 26-0458: D.C. Income and Franchise Tax Conformity and Revision Temporary Amendment Act of 2025

This bill temporarily revises D.C. income tax rules to better align with federal tax law for 2025. It establishes specific standard deduction amounts for D.C. taxpayers based on filing status: $15,000 for single filers, $22,500 for heads of household, and $30,000 for married couples filing jointly. Starting in 2026, these amounts will adjust annually based on cost-of-living changes (rounded to the nearest $50). The bill directly affects D.C. residents filing individual income tax returns, modifying how they calculate taxable income. The changes are temporary and apply only to the 2025 tax year.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill establishes higher standard deductions ($15k-$30k) for D.C. taxpayers, reducing taxable income and providing tax relief, aligning with federal standards to strengthen middle-income tax fairness.95% confidence

Sub-Topics Business Taxes Income Tax

in committee · District of Columbia · Legislature Mar 3, 2026

B 26-0229: Personal Property Tax Simplification Amendment Act of 2025

This bill increases the personal property tax exemption threshold for District of Columbia businesses from $225,000 to $325,000. It directly affects small businesses with tangible property (like equipment and furniture) valued below $325,000, removing the requirement to file the FP-31 tax return form. Businesses under the new threshold will no longer need to report property values or depreciation, reducing administrative burdens. The change takes effect for tax years beginning July 1, 2026, aligning with inflation adjustments moving forward.

Topics ✓ Budget & TaxesSupports Budget & TaxesIncreases tax exemption threshold for small businesses, reducing their tax burden and administrative requirements - tax relief for small businesses.90% confidence

Sub-Topics Business Taxes Tax Incentives

Track