The Small Retailer Property Tax Credit Expansion Amendment Act of 2025 aims to increase the small retailer property tax credit from $10,000 to $20,000, allowing retail businesses to better offset their property taxes or rent paid to landlords for property taxes. This legislative change is in response to the significant challenges faced by local restaurants and small businesses, including rising operational costs, declining sales, and reduced customer traffic, exacerbated by factors such as inflation, high rents, and a decrease in international tourism. The bill recognizes the importance of supporting small, independently owned businesses that serve as vital community anchors and employment sources.

The bill amends Chapter 18 of Title 47 of the District of Columbia Official Code, specifically updating the maximum credit amount for tax years. The new provisions state that for tax years beginning after December 31, 2026, the maximum credit will be set at $20,000, with annual adjustments based on the cost-of-living. This expansion is intended to provide more substantial financial relief to small retailers, helping them navigate the current economic landscape and maintain their operations.