From Preservation Action:

Bipartisan legislation was recently introduced in the House that would create a tax incentive to convert older commercial buildings into affordable housing. The Revitalizing Downtowns and Main Streets Act (H.R. 2410), introduced by Rep. Mike Carey (R-OH) and Rep. Jimmy Gomez (D-CA), would create a new 20% tax incentive, modeled after the Historic Tax Credit (HTC), to convert older commercial properties and office space into affordable housing. The bill would require the properties to be more than 20 years old and that a minimum of 20% of the residential units created to be affordable. The total credit would be capped at $15 billion. Advocates say this bill would help address two parallel problems, the ongoing affordable housing crisis and commercial and office space often sitting vacant or underutilized in downtowns, suburbs, and small towns across the country as more people are working from home since the COVID-19 pandemic.

The bill includes a couple of provisions that relate to historic preservation. One provision would reduce the property conversion credit by 50% on projects that qualify for the HTC. Another provision increases the credit from 20% to 35% on the first $2 million in qualified expenditures for historic preservation projects located in rural areas. Additionally, the credit would be able to be stacked with other federal tax incentives, including the HTC.

Companion legislation is expected to be introduced in the Senate soon. The full text of the bill is available below.

Learn More: https://www.congress.gov/bill/119th-congress/house-bill/2410