Bill > SB01263

This bill establishes a tax credit program for converting commercial buildings into residential developments, administered by the Commissioner of Housing. Beginning July 1, 2025, property owners who convert commercial properties (like hotels, retail spaces, offices, or industrial buildings) into residential housing can receive a tax credit equivalent to 10% of their qualified conversion expenditures, with a maximum credit of $30,000 per dwelling unit for non-nonprofit owners and $50,000 per unit for nonprofit corporations. To qualify, owners must submit a detailed conversion plan for approval, incur at least $15,000 in conversion costs, and ensure the plan potentially creates or preserves affordable housing. The tax credit can be applied against state income taxes, with any excess credit refunded to the taxpayer. The program is limited to $3 million in tax credits per fiscal year, and the Commissioner of Housing will develop specific standards for approving these tax credit vouchers. The bill aims to incentivize the transformation of underutilized commercial spaces into residential housing, potentially helping to address housing availability and affordability in the state.

Budget and Finance, Housing and Urban Affairs

Housing Committee (J)

https://www.cga.ct.gov/asp/cgabillstatus/cgabillstatus.asp?selBillType=Bill&bill_num=SB01263&which_year=2025