Budget & Taxes (Tax Incentives)

This bill would provide a complete property tax exemption for disabled veterans in the District of Columbia who have a 100% service-connected disability rating from the U.S. Department of Veterans Affairs, as well as for their surviving spouses or the surviving spouses of veterans who died in the line of duty. It removes the current $159,750 household income limit and replaces the partial $445,000 deduction with a full exemption, aligning with policies in Maryland and Virginia. The exemption applies to the primary residence and associated property, while preserving the requirement for a VA disability rating.

The Job Growth Incentive Amendment Act of 2025 provides a tax credit to businesses that create at least 25 new jobs for District residents with wages at or above the average DC yearly wage between 2027 and 2032. The credit equals up to 100% of the business's FICA taxes for those employees and can be claimed for up to ten years if the jobs are retained beyond the first year. This updates the 2010 program, which required 10 jobs, a 120% wage threshold, and a 50% credit rate.

This bill extends the timeline for So Others Might Eat (SOME) to certify its 23-unit affordable housing property at 2607 Connecticut Avenue NW as tax-exempt under the Nonprofit Workforce Housing Properties Real Property Tax Exemption Act of 2019. It changes the required certification period from 12 to 36 months after property acquisition and forgives/repays real property taxes paid since January 2023 if the property qualifies. The legislation directly affects the specific housing building owned by 2607 Connecticut LLC, which serves low-income tenants and has experienced slower lease-up than anticipated. The policy change ensures the Council's intended tax exemption aligns with the nonprofit's housing operations, allowing funds to stay focused on housing services rather than tax payments.

The Studio Theatre Tax Abatement Amendment Act of 2025 updates a property tax exemption to reflect a new building used for Studio Theatre’s apprentice housing program. It amends the District of Columbia code to replace the old property description (1630 Corcoran St. NW) with the new one (1437 Clifton St. NW), ensuring the tax exemption continues for the same nonprofit program. This directly affects Studio Theatre by maintaining their property tax exemption for housing used in their apprentice program, which provides training, housing, and stipends to 11 early-career arts professionals annually. The change aligns with the original 2009 tax abatement intent, preserving support for the theater’s nonprofit activities after they replaced the property in 2021.

This bill increases the personal property tax exemption threshold for District of Columbia businesses from $225,000 to $325,000. It directly affects small businesses with tangible property (like equipment and furniture) valued below $325,000, removing the requirement to file the FP-31 tax return form. Businesses under the new threshold will no longer need to report property values or depreciation, reducing administrative burdens. The change takes effect for tax years beginning July 1, 2026, aligning with inflation adjustments moving forward.