Disapproving the action of the District of Columbia Council in approving the D.C. Income and Franchise Tax Conformity and Revision Temporary Amendment Act of 2025.

On February 18, 2026, H.J. Res. 142, titled "Disapproving the action of the District of Columbia Council in approving the D.C. Income and Franchise Tax Conformity and Revision Temporary Amendment Act of 2025," was signed into law. This joint resolution nullifies the D.C. legislation, thereby reinstating the tax code provisions that were in place prior to December 20, 2025. This means that changes related to the standard tax deduction, taxation of tipped wages, and depreciation of qualified property in the District of Columbia, which would have been enacted by the D.C. Council, will not take effect. This legislative action does not involve any direct federal funding or appropriations. Its effect is limited to the tax code within the District of Columbia, specifically preventing certain amendments from becoming law. The bill's passage ensures that the existing D.C. tax structure, which automatically adopts federal tax law changes (rolling conformity), remains unchanged by the D.C. Council's attempt to revise it. Given the localized nature of the bill's impact, affecting only the District of Columbia's tax code, there are no identifiable structural winners or losers among publicly traded companies. The legislation primarily impacts D.C. residents and businesses by maintaining the status quo regarding local tax provisions. No specific companies or sectors are positioned to gain or lose from this action. This bill has completed its legislative journey, having been considered and passed by both the House and Senate in early February 2026, and subsequently signed into law. There are no further legislative steps remaining for H.J. Res. 142.