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SB 1263 Connecticut Senate · 2025 Regular Session

AN ACT CONCERNING TAX CREDITS FOR THE CONVERSION OF COMMERCIAL PROPERTIES.

SB 1263 creates a tax credit program for property owners converting commercial buildings (like offices or retail spaces) into residential developments in Connecticut. Owners who spend at least $15,000 on eligible construction costs - such as structural changes - can claim a credit equal to 10% of those costs against state income or business taxes. The credit requires conversions to create or preserve affordable housing units, as determined by the Commissioner of Housing, and mandates that owners submit detailed conversion plans for approval before starting work. This policy directly affects commercial property owners and nonprofit housing developers seeking to repurpose underutilized buildings.
Issues: ✓ Budget & TaxesSupports Budget & TaxesCreates 10% tax credit against state taxes for commercial-to-residential conversions requiring affordable housing, providing targeted tax relief while directing state revenue toward housing goals.90% confidence ✓ HousingSupports HousingTax credit requires conversions to create/preserve affordable housing units, directly advancing affordable housing development through financial incentives.95% confidence
Bill status in committee 1 of 4 stages cleared
Introduction
Feb 2025
Committee Review
Floor Vote
Governor
Introduced Feb 6, 2025 Last action Mar 19, 2025
Maddy AI version diff · 1 comparison

What changed between versions

Raised Bill → HSG Joint Favorable Substitute Change of Reference · 5 edits
MODERATE
The bill was renumbered from a 'Raised Bill' to a 'Substitute Bill' indicating it has been amended by a committee. The primary substantive change is the addition of new subsection (h)(A)(i) which specifies that tax credit vouchers issued on or after January 1, 2026, can be applied against the tax imposed under chapter 229 of the general statutes. Several technical edits were made to definitions and procedural language throughout the document.
Scope change
The bill's scope remains focused on tax credit vouchers for converting commercial buildings to residential developments, but the new subsection clarifies the specific tax chapter (229) eligible for the credit for vouchers issued after 2025.
FISCAL

New subsection (h)(A)(i) was added to specify that tax credit vouchers issued on or after January 1, 2026, can be applied against the tax imposed under chapter 229 of the general statutes.

DEFINITION

Definition of 'Commercial building' was modified to remove 'retail space or office space but does not include an industrial building' and replace it with 'retail space, office space or an industrial building'.

REQUIREMENT

Language throughout the bill was updated from 'under the provisions of' to 'pursuant to' for consistency in legal terminology.

Added requirement in subsection (f) that the owner must provide documentation of work performed and certify costs incurred, and the commissioner must verify compliance with the conversion plan before issuing the voucher.

TECHNICAL

Removed the phrase 'converting the commercial building' from the list of eligible recipients for the tax credit voucher in subsection (f).

Floor votes

How they voted

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Full legislative history

Actions timeline

Total actions
7
Key actions
1
Committee
2
Mar 6, 2025
Upper · Passed
Joint Favorable Substitute Change of Reference FIN
upper
Feb 6, 2025
Committee
REF. TO JOINT COMM. ON Housing
upper
0 primary · 0 co-sponsors

Sponsors

No sponsor information available.