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Read. Follow. Verify.Connecticut bill creates tax credits for converting commercial buildings into residential housing
Last action · February 20, 2026: Public Hearing 02/24Sponsor: Paul Cicarella
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What This Bill Proposed
The Commissioner of Housing must establish a tax credit program by January 1, 2027, for property owners and nonprofit corporations converting s into residential developments with s exceeding $15,000. Eligible participants receive a equal to 10 percent of their actual conversion expenditures, capped at $30,000 per dwelling unit for standard owners and $50,000 per unit for nonprofits, subject to a statewide annual aggregate cap of $3 million.
Property owners and nonprofits undertaking commercial-to-residential conversions can offset state tax liabilities or receive refunds on excess credits, while the state caps total annual allocations at $3 million and individual credits at $30,000 to $50,000 per dwelling unit.
- State legislatures increasingly explore commercial-to-residential adaptive reuse programs to address housing shortages and revitalize underutilized downtown commercial space. context
Who It Would Have Affected
Groups the bill's text would have affected, as described in the record. Being affected is not a position for or against it.
Commercial building owners
Property owners converting commercial structures into residential housing are eligible to receive tax credit vouchers worth 10 percent of qualified conversion expenditures.
Nonprofit corporations
Nonprofits involved in housing conversion can receive tax credits up to $50,000 per dwelling unit, offset against specific state taxes, with a four-year carry-forward for unused portions.
Commissioner of Housing
The commissioner must establish the tax credit program, develop approval standards, evaluate conversion plans within 60 days, and issue vouchers.
Commissioner of Revenue Services
The commissioner must grant tax credits against applicable state taxes, process tax refunds for excess credit amounts, and coordinate with the Department of Housing.
Key Facts
- The Commissioner of Housing must establish a tax credit program by January 1, 2027, for converting commercial buildings into residential developments.
- Eligible owners must incur qualified conversion expenditures exceeding $15,000 to qualify for a tax credit voucher.
- The tax credit voucher amount is equal to 10 percent of the total actual qualified conversion expenditures.
- Tax credits are capped at $30,000 per dwelling unit for non-nonprofit owners and $50,000 per dwelling unit for nonprofit corporations.
Show all 8 facts
- The aggregate amount of tax credits reserved by the commissioner shall not exceed $3 million in any single fiscal year.
- Qualified conversion expenditures exclude personal labor, site improvements (except for disability access), new additions (unless required by building codes), outbuildings without dwelling units, and nonconstruction costs such as architectural, legal, and financing fees.
- Owners must submit a conversion plan and estimate prior to beginning work, and the commissioner must evaluate compliance within 60 days.
- The Commissioner of Revenue Services grants credits against specific state taxes, providing refunds for excess amounts for individual taxpayers and four-year carry-forwards for nonprofit corporations.
Frequently Asked Questions
Who is eligible to receive the commercial property conversion tax credit?
What costs are excluded from qualified conversion expenditures?
Is there a limit on the total amount of tax credits the state can issue each year?
What else do you want to know?
News Coverage
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Votes, people, money & the original sourceWhere This Stands
This bill did not become law - Died at adjournment · in Senate committee.
Procedural history
2 actions- Feb 20, 2026Connecticut General AssemblyPublic Hearing 02/24
- Feb 19, 2026Connecticut General AssemblyCommitteeReferred to Joint Committee on Housing
Version history
Only one version on file - nothing to compare yet. As later stages (committee substitute, engrossed, enrolled) are captured, the redline appears here.
View official text →Lobbying Activity
No state lobbying filings in our records match this bill. Federal lobbying reports (LDA) cover Congress, so they are not listed on state bills.
Full breakdown
Who this bill affects and the strongest case for and against it, written only from the bill’s own text.
Sponsors
Discoveries
Patterns POLISCOPE noticed across the record. These are observations to investigate, not conclusions.
Commercial Adaptive Reuse Tax Incentives
The bill creates a targeted financial mechanism specifically leveraging tax credits to encourage the conversion of underutilized commercial and industrial spaces into residential housing.
Connected Entities
Sources
cga.ct.gov
Analysis Score
0–100- Significance20Lowered because this bill did not pass (its text scored 65)
- Controversy15Intensity of disagreement among stakeholders
- Entertainment5Compellingness for a non-policy-wonk reader
- Buzz35Current news / social attention level
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