Federal and State Policymakers Propose Incentives for Office-to-Housing Conversions

As the office real estate market continues to struggle with high vacancy rates and falling property values, policymakers are considering tax incentives to encourage office-to-housing conversions. A bipartisan bill from the House would provide a temporary 20 percent tax credit for qualified property conversion expenditures. Meanwhile, policymakers in New York are considering a 90% tax abatement for New York City developers who set aside a quarter of an office conversion’s units for affordable housing. Notwithstanding these measures, many experts believe the commercial real estate sector will continue to struggle.

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