Congress Reintroduces Bill to Encourage Conversion of Commercial Property into Housing

Last week Representatives Mike Carey (R-OH-15) and Jimmy Gomez (D-CA-34), reintroduced the bipartisan Revitalizing Downtowns and Main Streets Act. The bill (H.R. 2410) incentivizes the conversion of existing vacant and underutilized commercial properties into new housing.

The Revitalizing Downtowns and Main Streets Act would provide a federal tax credit, modeled after the Historic Preservation Tax Credit, to facilitate the conversion of older, underutilized office and other commercial buildings into residential housing.

The credit amount for any taxable year would be equal to 20% of the qualified conversion expenditures with respect to a qualified converted building. For difficult development areas, the amount is increased to 30%. For historic preservation conversions in rural areas, the amount is increased to 35% for up to $2 million of the conversion expenditures.

ICSC is a longtime supporter of this legislation, which was introduced in the last Congress in 2024. 

Other supporters of the measure include: The Real Estate Roundtable, American Hotel and Lodging Association, American Land Title Association, American Resort Development Association, American Seniors Housing Association, CCIM Institute, ICSC, Institute of Real Estate Management, Latino Hotel Association, Mortgage Bankers Association, NAIOP, the Commercial Real Estate Development Association, Nareit, National Apartment Association, National Association of Home Builders, National Association of Realtors, National Multifamily Housing Council, National Rental Home Council, Council of Development Finance Agencies, the Sheet Metal and Air Conditioning Contractors’ National Association, Up for Growth Action, Main Street America, and International Downtowns Association.

For more information contact Phillips Hinch at phinch@icsc.com.