The General Assembly Raised Bill No. 254 aims to establish a tax credit program to incentivize the conversion of commercial properties into affordable housing. Effective July 1, 2026, the bill defines key terms such as "affordable housing," "commercial building," and "qualified conversion expenditure," and outlines the responsibilities of the Commissioner of Housing in administering the program. Owners of commercial buildings seeking to convert them into residential developments can apply for tax credit vouchers amounting to ten percent of their qualified conversion expenditures, provided they meet certain standards, including the creation or preservation of affordable housing units.

The bill also stipulates that the total amount of tax credits reserved by the Commissioner of Housing cannot exceed three million dollars in any fiscal year. It specifies that tax credits for non-profit corporations can reach up to fifty thousand dollars per dwelling unit, while other owners can receive up to thirty thousand dollars per unit. Additionally, the bill includes provisions for the Commissioner of Revenue Services to grant tax credits against state taxes based on the vouchers issued, and it allows for unused credits to be carried forward for up to four years. Overall, the bill seeks to facilitate the conversion of underutilized commercial properties into much-needed residential units, thereby addressing housing shortages.