Raised Bill No. 270, introduced to the General Assembly and referred to the Committee on Housing, proposes a new act concerning tax credits for the conversion of commercial properties into residential developments. The bill defines terms such as "affordable housing," "commercial building," "conversion plan," "dwelling unit," "industrial building," "nonprofit corporation," "owner," "qualified conversion expenditures," and "residential development." It specifies that commercial buildings do not include industrial buildings and outlines what expenses are considered qualified conversion expenditures, excluding costs such as the owner's personal labor, site improvements (unless for disability access), new additions (unless required by code), conversion of outbuildings (unless they contain dwelling units), and nonconstruction costs like architectural, legal, and financing fees.
The bill mandates that by January 1, 2025, the Commissioner of Housing must establish a program to administer tax credit vouchers for owners converting commercial buildings into residential developments, with eligible owners receiving a voucher equal to ten percent of the qualified conversion expenditures. The Commissioner is also tasked with developing standards for the approval of these tax credit vouchers, considering the creation or preservation of affordable housing units. Owners must submit a conversion plan and estimated costs for approval before starting conversion work. Upon completion, the owner must provide documentation and certify costs to receive a tax credit voucher, which can be used against state taxes. The credit is capped at $30,000 per dwelling unit for non-nonprofit owners and $50,000 per unit for nonprofit owners, with a total annual limit of $3 million in tax credits reserved by the Commissioner of Housing. The act is effective July 1, 2024, and applicable to taxable years commencing on and after that date. The purpose of the bill is to incentivize the conversion of commercial buildings into residential developments through tax credits. There are no deletions indicated in the provided text.