diff --git a/changelog.d/dc-cdcc-2026-rate.changed.md b/changelog.d/dc-cdcc-2026-rate.changed.md
new file mode 100644
index 00000000000..584a41178b9
--- /dev/null
+++ b/changelog.d/dc-cdcc-2026-rate.changed.md
@@ -0,0 +1 @@
+Update DC CDCC match rate to 24.25% for tax year 2026+ per DC Code 47-1806.04(c)(1)(B), as amended by the FY2025 Budget Support Act (D.C. Act 25-506, sec. 7032).
diff --git a/policyengine_us/parameters/gov/states/dc/tax/income/credits/cdcc/match.yaml b/policyengine_us/parameters/gov/states/dc/tax/income/credits/cdcc/match.yaml
index f27f855cf1a..ebd8fb457db 100644
--- a/policyengine_us/parameters/gov/states/dc/tax/income/credits/cdcc/match.yaml
+++ b/policyengine_us/parameters/gov/states/dc/tax/income/credits/cdcc/match.yaml
@@ -14,5 +14,8 @@ metadata:
       href: https://otr.cfo.dc.gov/sites/default/files/dc/sites/otr/publication/attachments/2024_D40_Booklet_011525.pdf#page=34
     - title: 2025 DC Form D-40 Booklet, Line 21
       href: https://otr.cfo.dc.gov/sites/default/files/dc/sites/otr/publication/attachments/2025_D40_Book_Final_wLinks_021226_v1.0.pdf#page=21
+    - title: DC Code 47-1806.04(c)(1)(B), as amended by FY2025 Budget Support Act (D.C. Act 25-506, sec. 7032)
+      href: https://code.dccouncil.gov/us/dc/council/code/sections/47-1806.04
 values:
   2021-01-01: 0.32
+  2026-01-01: 0.2425
diff --git a/policyengine_us/tests/policy/baseline/gov/states/dc/tax/income/dc_cdcc.yaml b/policyengine_us/tests/policy/baseline/gov/states/dc/tax/income/dc_cdcc.yaml
index b91a435b007..e1d9cb789d1 100644
--- a/policyengine_us/tests/policy/baseline/gov/states/dc/tax/income/dc_cdcc.yaml
+++ b/policyengine_us/tests/policy/baseline/gov/states/dc/tax/income/dc_cdcc.yaml
@@ -13,3 +13,19 @@
     state_code: DC
   output:
     dc_cdcc: 32  # = 100 * 0.32
+
+- name: DC CDCC 2025 rate still 32%
+  period: 2025
+  input:
+    cdcc_potential: 1_000
+    state_code: DC
+  output:
+    dc_cdcc: 320  # = 1_000 * 0.32
+
+- name: DC CDCC 2026 rate reduced to 24.25%
+  period: 2026
+  input:
+    cdcc_potential: 1_000
+    state_code: DC
+  output:
+    dc_cdcc: 242.5  # = 1_000 * 0.2425