Committee hears proposal for 30% 'CUB' credit to convert underutilized buildings into housing and other uses

Senate File 768 (the "CUB" credit, for Catalyzing Underutilized Buildings) would create a new tax credit or grant equal to 30% of qualifying conversion expenses for eligible projects that repurpose underutilized buildings. The committee adopted an A‑1 amendment by voice vote and laid the bill over for further consideration after substantial testimony from developers, municipal leaders, labor representatives and nonprofit groups.

Under the bill text presented to the committee, key provisions include: applicants must file with the commissioner of deed before a conversion begins; the commissioner may charge application fees of up to 1% of estimated qualifying conversion expenses to offset administrative costs; the commissioner issues an allocation certificate and later a credit certificate or grant after the project is placed in service;…