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Council decouples 13 tax provisions from federal OB3A; members approve targeted credits after amendment votes
Summary
The Council passed emergency decoupling legislation to prevent DC revenue loss from recent federal tax changes and approved an amendment accelerating a 100% Earned Income Tax Credit match and reinstating a Child Tax Credit after intense debate and multiple roll‑call amendments.
Chair Mendelson explained that, as a rolling conformity jurisdiction, the District would automatically adopt many federal tax changes unless the Council acted; the emergency legislation decouples 13 provisions the CFO estimated would materially reduce District revenues. "Moving this legislation on an emergency basis will give the council more time to thoughtfully analyze and consider the various tax provisions," Mendelson said.
Councilmembers debated how to use the revenue preserved by decoupling. Councilmembers Parker and Fruman offered a high‑profile amendment that would accelerate the District's 100% match of the federal Earned Income Tax Credit (EITC) to tax year 2025 and reestablish a local Child Tax Credit phased in for later tax years. Members also debated a municipal‑bond interest exemption that some members said would primarily benefit wealthier retirees; that provision was struck after an amendment by Councilmember McDuffie. After multiple roll calls, the amended decoupling measure that included the EITC acceleration and the child tax credit advanced and the underlying decoupling bill passed as amended.
