U.S. Reps. Mike Carey (R-OH) and Jimmy Gomez (D-CA) introduced the bipartisan “Revitalizing Downtowns and Main Streets Act” in the House of Representatives on July 12, 2024. Modeled after the Historic Preservation Tax Credit, the legislation proposes a tax credit for conversion of commercial buildings and supports the provision of affordable housing. Highlights of the legislation include:
- Property owners will receive a 20% tax credit for expenses incurred during the conversion of an eligible commercial property that can be repurposed for residential use.
- Eligible buildings must be over 20 years old.
- At least 20% of residential units created must be affordable for those earning 80% or less of area median income.
- The credit can be combined with other incentives, including historic tax credits.
- Credits will be allocated by state housing agencies.
McGuireWoods real estate, land use and tax attorneys are available to answer inquiries regarding this legislation.