H.R.2410 - Revitalizing Downtowns and Main Streets Act (119th Congress)
Summary
H.R.2410, the "Revitalizing Downtowns and Main Streets Act," proposes an amendment to the Internal Revenue Code of 1986. The amendment introduces an investment tax credit for converting non-residential buildings into affordable housing. This credit aims to incentivize the creation of affordable housing units in downtown and main street areas by providing a tax benefit to developers.
Expected Effects
The bill's passage would likely lead to an increase in the supply of affordable housing, particularly in urban and town centers. This is achieved by making such conversion projects more financially attractive. The tax credit, set at 20% of qualified conversion expenditures, could stimulate investment in underutilized or vacant commercial properties.
Potential Benefits
- Increased availability of affordable housing, addressing a critical need in many communities.
- Revitalization of downtown and main street areas by repurposing non-residential buildings.
- Potential for job creation in construction and related industries during the conversion process.
- Support for economically distressed areas through targeted credit allocations.
- Encourages public-private partnerships between housing credit agencies and developers.
Potential Disadvantages
- Potential for increased government debt due to the tax credit expenditure.
- Complexity in administering and allocating the tax credits, potentially leading to inefficiencies.
- Risk of the credit being utilized in areas where affordable housing is not the most pressing need.
- Possible displacement of existing businesses in non-residential buildings being converted.
- The credit may not be sufficient to overcome other barriers to affordable housing development, such as zoning restrictions or high land costs.
Constitutional Alignment
The bill appears to align with the Constitution's general welfare clause (Preamble). It aims to promote the well-being of citizens by increasing access to affordable housing. Congress's power to tax and spend for the general welfare is established through Article I, Section 8, Clause 1. The bill's provisions for allocating credits through state housing agencies also respect the principles of federalism.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).