Which tax incentive program aims to transform underutilized land?

The 421A tax exemption program is specifically designed to stimulate the development of residential housing in New York City by incentivizing the use of underutilized land. This program provides property tax exemptions for new residential construction, thereby encouraging developers to build on sites that may otherwise remain vacant or poorly utilized. By making the potential financial returns more favorable, the 421A program transforms underutilized land into productive housing developments, effectively addressing housing shortages and promoting the efficient use of urban space.

In contrast, the other options serve different purposes. Tax Increment Financing (TIF) is primarily a tool for funding public infrastructure improvements and does not directly target underutilized land for development. The Historic Preservation Tax Credit focuses on preserving historically significant properties rather than transforming underutilized sites. Similarly, the Community Development Block Grant (CDBG) provides funding for a variety of community development initiatives, such as affordable housing and infrastructure improvements, but it does not specifically incentivize the development of underutilized land in the same way that the 421A program does.