Bill Would Create Tax Credit to Convert ‘Obsolete’ Office Buildings into Residential, Institutional, Hotel or Mixed-Use Properties
Legislators in both houses of Congress this week introduced a bill to create a tax credit to convert unused office buildings into residential, institutional, hotel or mixed-use properties. The Revitalizing Downtowns Act (S. 2511) would create a 20% tax credit for expenses to convert obsolete office buildings, which are structures that are at least 25 years old. Residential conversions would require at least 20% of the units to be dedicated to affordable housing. Bill sponsors–Sens. Debbie Stabenow, D-Michigan, and Gary Peters, D-Michigan; Reps. Jimmy Gomez, D-California, Dan Kildee, D-Michigan and John Larsen, D-Connecticut–noted a decrease in the use of office space in the wake of the COVID-19 pandemic and rise of remote work.
The effect of the pandemic on housing, community development and historic preservation will be the subject at each of Novogradac’s fall conferences.