Revitalizing Downtowns and Main Streets Act

H.R. 2410 would amend the tax code to create a new federal tax credit designed to incentivize the conversion of older, underutilized commercial and office buildings into affordable housing. The bill would offer property owners and developers a tax credit equal to 20% of their conversion costs, with higher percentages (30%) available in economically distressed areas and 35% for historic preservation projects in rural areas. The legislation would allocate $15 billion in total tax credit authority, with $12 billion distributed to states based on population and $3 billion reserved for economically distressed communities. To qualify, buildings must be at least 20 years old, and at least 20% of the resulting housing units must be affordable to residents earning 80% or less of the area median income.

The bill aims to address the nation's affordable housing shortage by repurposing vacant downtown and main street properties that have been underutilized, particularly following economic shifts in commercial real estate. By providing financial incentives for these conversions, the legislation would reduce barriers to transforming empty office buildings into residential units while promoting economic revitalization in struggling urban areas. The bill is currently under consideration by the House Committee on Ways and Means and has bipartisan support from 28 cosponsors.