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The ATLAS and CMS collaborations have announced discovery of a ~125 GeV Higgsboson, after a combined analysis of the di-photon and ZZ search channels. Thisobservation has significant impact on low-energy supersymmetry. First, somefine-tuning is necessary to accommodate such a Higgs mass in the MinimalSupersymmetric Standard Model (MSSM) because the tree-level mass of the SM-likeHiggs boson in the MSSM is relatively small. We study the possibility oflifting the mass of the SM-like Higgs boson by non-decoupling D-term from anadditional U(1) gauge symmetry. In particular, we focus on a gaugedPeccei-Quinn symmetry which can also be related to a possible solution of themu problem in the MSSM. In addition to the measurement of the mass of theHiggs, the data also reveals a tantalizing hint of a significantly enhanceddi-photon signal rate, 1.56 pm 0.43 and 1.9 pm 0.5 times of the SM predictionin the CMS and ATLAS experiments, respectively. We demonstrate that such anenhancement can be accommodated in this MSSM extension. Anomaly cancellationrequires the introduction of charged exotics. If some of them happen to belight and have sizable coupling to the SM-like Higgs boson, the di-photonsignal rate can be enhanced significantly. EW precision measurements providestringent constraints on this model. Taking these into account, we identify twobenchmark scenarios. We argue that they are representative of large classes ofviable models beyond our current example which can consistently enhance theHiggs to di-photon rate. We also comment on possible signals of such lightexotics at the LHC.

125 GeV Higgs Boson, Enhanced Di-photon Rate, and Gauged U(1)_PQ-Extended MSSM