The Council of the District of Columbia voted to become the first city in the United States to implement a local child tax credit this week.
The Council passed a resolution on Tuesday that separated Washington ‘s local tax policy from its federal counterpart. The bill is set to “decouple” the district’s tax code from the federal tax code, which was newly amended with sweeping tax cuts under the One Big Beautiful Bill Act. The district’s financial officials estimated that the piece of emergency legislation would save the district government nearly $100 million by the end of fiscal 2025 and nearly $660 million by the end of fiscal 2029.
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