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New bipartisan legislation, the Revitalizing Downtowns and Main Streets Act (H.R. 9002), would provide developers and building owners with a tax credit to convert underutilized or vacant commercial properties to residential use.
The bill is sponsored by Reps. Mike Carey (R-Ohio) and Jimmy Gomez (D-Calif.) and has the support of NAR, NAIOP and other industry groups. Sens. Debbie Stabenow and Gary Peters (D-Mich.) introduced a companion version of the bill.
“Incentivizing the conversion of even a relatively small percentage of these buildings can bring new life to neighborhoods, create jobs, and generate revenues at every level of government,” says NAR President Kevin Sears. The proposed legislation provides:
- A 20% tax credit for expenses incurred during the conversion of an eligible underutilized or vacant commercial property that is at least 20 years old and is capable of being repurposed for residential use
- At least 20% of the units must be reserved as affordable housing for those with incomes at or below 80% of the area median income
- Additional incentives for rural and economically distressed areas to ensure that all communities can benefit
- The ability to combine existing historic tax credits and other incentives offered by municipalities and states