Industry associations have welcomed the introduction of H.R. 9002, also known as the Revitalizing Downtowns and Main Streets Act. This bipartisan bill, sponsored by Representatives Mike Carey and Jimmy Gomez, aims to create a tax credit that will encourage the conversion of underutilized or vacant commercial properties into residential units.
According to Marc Selvitelli, president and CEO of NAIOP, this legislation has the potential to boost local economies while addressing housing shortages across America. He believes that it is an important step towards mitigating some of the effects caused by COVID-19 on communities and their tax revenues.
Jeffrey DeBoer, president and CEO of The Real Estate Roundtable also commended this proactive measure for its potential in revitalizing commercial properties while creating jobs and generating local property tax revenue. He urges support for this critical bipartisan legislation.
The proposed bill includes a 20% tax credit for expenses related to converting eligible underutilized or vacant commercial properties older than 20 years into residential units. It also mandates affordable housing options for those with incomes at or below 80% area median income in at least 20% converted units.
Additionally, there are incentives specifically designed for rural areas and economically distressed regions so that all communities can benefit from this legislation. Furthermore, property owners can combine existing historic tax credits with other incentives offered by municipalities or states.
