Revitalizing Downtowns and Main Streets Act

Increased Affordable Housing Opportunities: The bill provides a 20 percent tax credit for the conversion of commercial buildings into residential units that are rent-restricted and reserved for individuals earning 80 percent or less of the area median income (Section 2(a), 2(b), 2(c), and 2(d)).

Support for Economically Distressed Areas: The Secretary can designate additional amounts, up to $3,000,000,000, for buildings located in economically distressed areas (Section 2(e)(2)(C)).

Enhanced Benefits for Specific Census Tracts: In qualified census tracts or difficult development areas, the requirement for rent-restricted and income-restricted units increases from 20 percent to 30 percent to encourage more housing (Section 2(g)(1)).

Support for Rural Historic Preservation: In rural areas, taxpayers participating in a historic preservation project can increase their credit to 35 percent for a portion of expenditures up to $2,000,000 (Section 2(g)(2)).

Environmental Remediation Support: The bill allows for expenditures related to the clean up of qualifying brownfield property to be included in the credit (Section 2(b)(3)).

Strict Eligibility Requirements for Conversions: To qualify for the credit, the cost of the conversion must exceed a specific threshold, which is either 50 percent of the building's adjusted basis or $100,000 (Section 2(c)(1)).

Time-Limited Financial Incentives: The credit is limited to expenditures incurred during a 2-year period ending on the date the building is placed in service, unless specific progress expenditure rules apply (Section 2(b)(2)(A)).

Potential Loss of Credit: The Secretary may issue regulations for the recapture of the credit if a qualified affordable housing building ceases to be a qualified affordable housing building during the 30-year period (Section 2(h)(1)).

Exclusion of Acquisition Costs: The credit does not include the cost of acquiring any building or interest therein (Section 2(b)(2)(B)).