Last Friday, Representatives Mike Carey (R-Ohio-15) and Jimmy Gomez (D-Calif.-34) introduced bipartisan legislation to create a federal tax credit to spur the conversion of underutilized commercial structures to housing. A top legislative priority for NAIOP, the Revitalizing Downtowns and Main Streets Act:

• Creates a 20% tax credit for expenses incurred during the conversion of an eligible underutilized or vacant commercial property 20 years or older and is capable of being repurposed for residential use;
• Provides that 20% of converted residential units be designated as affordable housing for those with incomes at or below 80% of the area median income;
• Provides additional incentives for rural and economically distressed areas;
• Enables existing historic tax credits and other incentives offered by municipalities to be combined with the tax credit.

Commenting after the bill's introduction, NAIOP President and CEO Marc Selvitelli said the legislation would “spur the conversion of vacant spaces that can stimulate local economies and begin to address the housing crisis in communities across the U.S.” NAIOP will continue to work with its real estate coalition partners to advance conversion legislation as Congress continues to develop tax legislation in 2025.