Budget & Taxes (Tax Incentives)

This bill expands the District of Columbia's Supermarket Tax Incentive Program to include downtown DC and specific Northeast neighborhoods (Woodridge, North Michigan Park, Lamond Riggs, Queen’s Chapel, and Fort Totten). It allows supermarkets opening in these newly eligible areas to receive tax exemptions, directly affecting grocery stores seeking to locate there and residents in neighborhoods with limited grocery access. The program aims to address food deserts by encouraging new grocery development - currently, these areas rely on only two stores (Walmart and one organic market), while residents spend significant money on groceries outside DC. This expansion targets 12 census tracts serving over 23,000 residents, aligning with downtown housing goals and improving local food access.

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.