“To amend the Internal Revenue Code of 1986 to provide an investment credit for converting non-residential buildings to affordable housing.”
No CRS summary available for this bill.
This section establishes a new Affordable Housing Conversion Credit equal to 20% of qualified conversion expenditures for a taxpayer's conversion of an eligible commercial building (i.e., nonresidential real property placed in service at least 20 years prior) into a qualified affordable housing building placed in service during the taxable year. A qualified affordable housing building is a residential building where, for 30 years, at least 20% of units are both rent-restricted and reserved for households with income at or below 80% of area median income (using rules similar to the low-income housing tax credit under section 42(g)). Qualified conversion expenditures are amounts chargeable to capital account for depreciable property incurred during the 2-year period ending on the placement-in-service date (excluding acquisition costs), provided total expenditures exceed the greater of 50% of the building's adjusted basis or $100,000; such expenditures for brownfield cleanup qualify without regard to depreciability, and amounts also eligible for the rehabilitation credit under section 47 are reduced by 50%. The credit for any building is limited to the dollar amount allocated by the state housing credit agency, with a national limit of $12 billion (allocated to states by population share) plus up to an additional $3 billion designated by the Secretary for buildings in economically distressed areas.