Scored 4/10 on whether it helps or hurts everyday people.
The Taxes Themselves Bill
Tax credit bill lets S corps pay taxes themselves
Pass-Through Entities Income Tax and Tax Credit on Certain S Corporations and Partnerships Amendment Act of 2025
Mixed: some good, some bad ·
The bill would let certain small businesses choose to pay taxes as a company and give them a tax credit, which could lower their tax bill.
Our take
What we think, in plain words.
If passed, owners might pay less personal tax but the city could lose revenue, meaning other services might need higher taxes later. Small firms could like the flexibility, but taxpayers may pick up the cost.
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The facts
What the bill actually says, no spin.
- Allows pass‑through entities to elect entity‑level tax.
- Provides a tax credit for those entities.
- Targets certain S corporations and partnerships.
- Introduced in DC by Councilmember Phil Mendelson.
- Currently in committee and public hearing stage.
In the news
Scanning the news for this bill…
Headlines gathered from across the news, starting points to explore, not endorsements. Always read the official text before acting.
Sources
Read it yourself: the official bill and records.
This bill is in the Washington, D.C. Bill Book 2026
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