H.R. 2410: Revitalizing Downtowns and Main Streets Act

Introduced Mar 27, 202545 cosponsors

Sponsor

Mike Carey

Republican · OH-15

Bill Progress

IntroducedMar 27

Committee

Pass House

Pass Senate

Signed

Law

Latest Action · Mar 27, 2025

1/3

Referred to the House Committee on Ways and Means.

Turn empty office buildings into apartments people can afford

6 min readLast updated May 19, 2026

Why it matters

H.R. 2410 would create a $12 billion federal tax credit covering 20% of the cost of converting old commercial buildings into housing — 35% for rural historic projects — on the condition that at least 1 in 5 units stays rent-restricted for lower-income tenants for 30 years. It carves out $3 billion specifically for economically distressed areas and has drawn 45 cosponsors split almost evenly between Republicans and Democrats.

H.R. 2410, the Revitalizing Downtowns and Main Streets Act, creates a new federal tax credit worth 20% of what a developer spends converting an old commercial building into housing. Spend $10 million turning a vacant department store into apartments and the credit is worth $2 million. It only covers construction-type costs — not the price of buying the building.

Not every building or project qualifies. The building has to be at least 20 years old and have been nonresidential before the conversion. And the project has to be substantial: the spending must clear the higher of $100,000 or half the building's value going in. Costs only count if they're incurred in the two years ending when the building opens.

H.R. 2410 Bill Summary

What H.R. 2410 actually does.

A 20% credit for turning commercial buildings into housing

Developers can claim a federal credit equal to 20% of qualified conversion spending on a building placed in service during the year. Eligible costs are the construction-type expenditures tied to the conversion. The cost of buying the building itself does not count.

Only old buildings and substantial projects qualify

The building must have been first placed in service at least 20 years before the conversion starts and must have been nonresidential beforehand. The project also has to be substantial: spending must exceed the greater of $100,000 or 50% of the building's value immediately before conversion.

1 in 5 units stays affordable for 30 years

For 30 years after the building opens, at least 20% of the units must be rent-restricted and reserved for households earning 80% or less of area median income. In qualified census tracts and difficult development areas, that income threshold drops to 60% or less.

$12 billion cap, with $3 billion steered to distressed areas

The national credit limit is $12 billion, allocated to states by population through plans local governments approve. Treasury may designate up to $3 billion of that for buildings in economically distressed areas, including qualified census tracts, difficult development areas, and certain areas under the Public Works and Economic Development Act.

Rural historic projects get a 35% rate

In rural areas, a developer rehabilitating a certified historic structure can elect a 35% credit rate instead of 20% on up to $2 million in expenditures, giving small-town historic conversions a deeper incentive than the standard credit.

Tight timing rules, reallocation, and clawback

Costs incurred outside the two-year window ending at placement in service do not count, and acquisition costs are excluded. After December 31, 2028, unused credits from undersubscribed states move to oversubscribed states by population, and Treasury must write rules recapturing the credit if a building stops meeting the 30-year affordability terms.

Who benefits from H.R. 2410?

Developers converting old offices, stores, and warehouses

They can claim 20% of qualified conversion costs — 35% on the first $2 million for rural historic structures. The credit is transferable, meaning a developer can sell it to another taxpayer, which makes it easier to raise financing for a project.

Lower-income renters

At least 20% of units in each converted building stay rent-restricted for 30 years, reserved for households at or below 80% of area median income. In distressed neighborhoods, those units serve households at or below 60% of area median income.

Economically distressed downtowns and neighborhoods

Qualified census tracts, difficult development areas, and certain areas under the Public Works and Economic Development Act can tap up to $3 billion in specially designated credit authority, concentrating redevelopment where economic strain is highest.

Rural towns with historic buildings

A 35% rate on the first $2 million of expenditures for certified historic structures in rural areas gives small towns a stronger reason to rehabilitate aging landmark buildings into housing rather than let them sit empty.

Owners of contaminated brownfield sites

Cleanup costs for qualifying brownfield property can count toward the credit even when they wouldn't normally meet the depreciation eligibility rule, lowering the cost of redeveloping contaminated commercial sites.

Who is affected by H.R. 2410?

State housing credit agencies

States run the allocation process under a conversion credit plan that evaluates financial feasibility, affordable housing created, proximity to transit and jobs, support for small businesses, local government backing, and the building's readiness.

Local governments

Local governmental units have to approve the state's allocation plan, giving cities and towns direct influence over which conversion projects move forward in their jurisdictions.

Developers stacking the rehabilitation credit

If the same expenditures are also used for the existing rehabilitation credit, the amount counted toward this new credit is reduced by 50%, so developers combining both credits get a smaller benefit here on the overlapping costs.

Projects with long timelines or late spending

Costs incurred outside the two-year window ending at placement in service do not count, and acquisition costs are excluded entirely. Projects expected to run past two years can use progress-expenditure rules but still face the timing limits.

Cost & Funding

Authorization

$12,000,000,000 national credit limitation

At the 20% rate, a $12 billion cap roughly corresponds to about $60 billion in qualifying conversion spending nationwide.
Treasury may designate up to $3,000,000,000 of credit authority for buildings in economically distressed areas.
The bill creates a tax credit, not direct construction grants — there is no appropriated spending for building work.
After December 31, 2028, unused credits from undersubscribed states are reallocated to oversubscribed states by population.
If enacted, Treasury must establish the distressed-area designation program within 120 days.

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On the Record

What Congress Is Saying

H.R. 2410 hasn't been debated on the floor yet.

This section updates when a legislator speaks about it on the floor or in committee.

HR2410 Legislative Journey

1 actions

House: Committee Action

Mar 27, 2025

Referred to the House Committee on Ways and Means.

About the Sponsor

Mike Carey

Republican, Ohio's 15th congressional district · 5 years in Congress

Committees: Joint Committee of Congress on the Library, House Administration, the Budget

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Cosponsors (45)

No new cosponsors in 92 days — momentum stalled

This bill has 45 cosponsors: 23 Democrats, 22 Republicans, reflecting bipartisan support. Cosponsors represent 21 states: Alabama, Arizona, California, and 18 more.

23Democrats22Republicans·21 statesBipartisan

Jimmy Gomez

Democrat · CA

John Larson

Democrat · CT

Brian Fitzpatrick

Republican · PA

Terri Sewell

Democrat · AL

Claudia Tenney

Republican · NY

Donald Beyer

Democrat · VA

David Kustoff

Republican · TN

Judy Chu

Democrat · CA

Mike Kelly

Republican · PA

Jimmy Panetta

Democrat · CA

Carol Miller

Republican · WV

Danny Davis

Democrat · IL

Committee Sponsors

Ways and Means Committee

19D26R

|27 signed18 not yet

27 of 45 committee members cosponsored

16 Republicans across this committee haven't cosponsored yet. Mobilize their constituents

H.R. 2410 Quick Facts

Cosponsors

+40 more

Committee: Ways and Means
Chamber: House
Policy: Taxation
Introduced: Mar 27, 2025

Referred to the House Committee on Ways and Means.

Mar 27, 2025

Constituent Resources

Find your legislators on H.R. 2410

Get notified when this bill moves

Official Sources

H.R. 2410 on Congress.gov

Official bill page with text, actions, sponsors, and status for the Revitalizing Downtowns and Main Streets Act.

HUD Qualified Census Tracts and Difficult Development Areas

This HUD page explains the qualified census tract and difficult development area designations that trigger deeper affordability rules in the bill.

HUD Area Median Income Documentation

HUD publishes area median income limits used to determine whether households fall at or below the income thresholds referenced by the bill.

EPA Brownfields Program

The bill expressly allows certain brownfield cleanup expenditures to qualify, making EPA’s Brownfields Program a relevant official reference.

IRS Elective Pay and Transferability

The bill amends section 6418(f)(1)(A) to make the conversion credit transferable; this IRS page explains the federal tax credit transferability rules under section 6418.

NPS Federal Historic Preservation Tax Incentives

The bill's 35% rural rate applies to certified rehabilitation of a certified historic structure; the National Park Service administers these historic structure certifications.

IRS Form 8609 — Low-Income Housing Credit Allocation and Certification

The conversion credit borrows section 42's allocation and certification machinery, including state housing credit agency allocations like those reported on Form 8609.

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H.R. 2410 Common Questions

How much is the tax credit for converting office buildings into housing?

H.R. 2410 gives developers a credit worth 20% of qualified conversion spending — so a $10 million conversion earns a $2 million credit. Rural historic projects can elect a higher 35% rate on their first $2 million in costs.

What affordability strings come with the downtown conversion credit?

For 30 years after the building opens, at least 20% of the units must be rent-restricted and reserved for households earning no more than 80% of area median income. In flagged distressed areas, that income line drops to 60%.

How much money is behind the Revitalizing Downtowns and Main Streets Act?

H.R. 2410 caps the credit at $12 billion nationally, allocated to states by population. Treasury can specially designate up to $3 billion of that for buildings in economically distressed areas.

Can rural historic building conversions get a bigger credit?

Yes. For a certified historic structure in a rural area, the developer can elect a 35% credit rate instead of 20% on up to $2 million in qualified expenditures — a deeper incentive aimed at small-town landmark buildings.

What is the minimum spending required to qualify for the credit?

The project has to be substantial. Conversion spending must exceed the greater of $100,000 or 50% of the building's value immediately before the conversion begins. Smaller cosmetic projects don't make the cut.

Can a newer office building qualify for the conversion credit?

No. The building must have been first placed in service at least 20 years before the conversion starts, and it must have been nonresidential right before the conversion. Recently built offices don't qualify.

Does H.R. 2410 require deeper affordability in distressed areas?

Yes. In qualified census tracts and difficult development areas, the reserved units must serve households at 60% or less of area median income, rather than the standard 80%, so the affordable units reach poorer renters.

Can the credit be clawed back if a project stops being affordable?

Yes. Treasury must write recapture rules so the credit can be taken back if a building stops meeting the affordable-housing requirements at any point during the 30-year compliance period.

Based on H.R. 2410 bill text