The General Assembly Raised Bill No. 1263 aims to establish a tax credit program to incentivize the conversion of commercial properties into residential developments, effective July 1, 2025. The bill defines key terms such as "affordable housing," "commercial building," "conversion plan," and "qualified conversion expenditures." It mandates the Commissioner of Housing to create a program for administering tax credit vouchers, allowing eligible owners to receive a tax credit equal to ten percent of their qualified conversion expenditures. The bill also outlines the process for submitting conversion plans, obtaining certifications, and the conditions under which tax credits can be claimed.

Additionally, the bill specifies that tax credits will be capped at $30,000 per dwelling unit for non-profit owners and $50,000 for non-profit corporations, with an aggregate limit of $3 million in tax credits reserved annually. The Commissioner of Housing is tasked with developing standards for the approval of tax credit vouchers, which will consider the creation or preservation of affordable housing units. The bill also includes provisions for the Commissioner of Revenue Services to manage the tax credits and outlines the eligibility criteria for owners seeking these credits. Overall, the bill seeks to promote the conversion of underutilized commercial properties into much-needed residential housing.