1333 M Street, SE Tax Abatement Amendment Act of 2025
Summary
This bill amends the District of Columbia tax code to create a targeted real property tax abatement for the development project at 1333 M Street, SE in Ward 6. The abatement applies for 15 consecutive tax years beginning October 1, 2029, and covers real property taxes above $150,000 per year on the project site, which is associated with a Planned Unit Development approved by the Zoning Commission.
The tax relief is conditioned on the developer meeting a set of project commitments tied to the approved zoning orders. These include reserving at least 12% of residential gross floor area as inclusionary units, with specific affordability requirements for some two-bedroom units; constructing or advancing several public space and transportation improvements; and making two one-time $25,000 contributions, one for senior programming at the Arthur Capper Recreation Center and one for the Seafarer’s Yacht Club. The Mayor must verify compliance each tax year and certify eligibility to the Office of Tax and Revenue, which then processes the abatement.
Impact
The bill creates a new section in Chapter 46 of Title 47 of the D.C. Official Code establishing a property-specific tax abatement for Lot 2, Square 1048, Suffix-S at 1333 M Street, SE. It does not change the general property tax framework, but it does authorize a long-term reduction in taxes for this project if the developer satisfies affordability, infrastructure, and community-benefit conditions. The abatement is additive to any other incentives and does not limit the owner’s right to contest assessments.
Sentiment
The bill appears to have been generally favorable in the Council, passing first reading and final reading by 11-1 votes, with one vote against at each stage. The lack of committee transcript material limits insight into detailed debate, but the strong margins suggest broad support for the development package and its associated public benefits. The postponement between readings indicates some procedural delay, but not major opposition.
Contention
The main points of contention likely center on the use of a targeted tax abatement for a private development and whether the public benefits are sufficient to justify the forgone tax revenue. The bill ties the abatement to specific affordable housing, public realm improvements, and community contributions, which suggests supporters viewed these conditions as necessary safeguards. Any dissent likely reflected concern about granting a substantial, long-term tax preference to a single project rather than a broader policy change.