Revitalizing Downtowns and Main Streets Act

Bill 119 HR 2410, also known as the Affordable Housing Investment Credit Act of 2021, aims to amend the Internal Revenue Code of 1986 to provide an investment credit for converting non-residential buildings into affordable housing. The bill seeks to address the ongoing issue of affordable housing shortages in the United States by incentivizing the conversion of existing non-residential buildings, such as office spaces or warehouses, into affordable housing units.

Under this proposed legislation, developers and investors who convert non-residential buildings into affordable housing would be eligible for a tax credit to help offset the costs associated with the conversion process. The credit would be based on the qualified basis of the affordable housing units created through the conversion, with a maximum credit amount set at 30% of the qualified basis.

The bill also includes provisions to ensure that the affordable housing units created through these conversions remain affordable for a specified period of time, typically at least 30 years. This is intended to prevent the units from being converted back into market-rate housing once the tax credit has been claimed. Overall, the Affordable Housing Investment Credit Act of 2021 aims to encourage the repurposing of underutilized non-residential buildings into much-needed affordable housing units, thereby helping to address the affordable housing crisis in the United States.