Sponsors (3)
The bill uses substantial tax incentives and a 50-year covenant requirement to enable resident or nonprofit purchases that can preserve manufactured-home communities and slow site-fee inflation, but it reduces federal revenue and introduces complexity and eligibility rules that risk excluding some low-income residents or allowing benefits without durable affordability protections.
Low-income homeowners and residents in manufactured-home communities are more likely to keep their homes affordable long-term because sales to resident-controlled cooperatives or nonprofits must carry a 50-year covenant preserving use as manufactured-home communities.
Resident-controlled cooperatives, nonprofits, and some sellers are made much more financially able to buy or sell communities to residents because the bill provides a large tax incentive (credit/deferral equal to a large share of qualified gain) that reduces up-front cost and tax burden.
Residents in limited-equity or resident-owned parks are likely to face slower site-fee inflation, protecting household budgets compared with commercial park ownership.
Federal taxpayers could face substantial revenue loss because the credit/deferral provisions (including a generous 75% credit treatment) would reduce federal receipts and could increase deficits or crowd out other spending.
If the incentive is poorly designed or enforced, sellers could claim tax benefits without producing durable affordability protections, meaning the program may fail to preserve communities for intended low-income residents.
The program favors buyers with access to capital or nonprofit networks and may disadvantage individual low-income residents who lack funds or organizational support to form resident cooperatives.
Based on analysis of 3 sections of legislative text.
Creates a business tax credit equal to 75% of qualified gain for sellers who sell manufactured home community land to resident-controlled cooperatives or nonprofits with 50-year covenants to preserve the site.
Official title: Amend the Internal Revenue Code of 1986 to allow a business credit for gain from the sale of real property for use as a manufactured home community, and for other purposes.
Introduced May 20, 2026 by Jeanne Shaheen · Last progress May 20, 2026
Creates a federal tax incentive to preserve and expand resident- or nonprofit-owned manufactured home communities by giving sellers a business tax credit worth 75% of the qualifying gain when they sell land to a qualified resident-controlled cooperative or nonprofit that agrees to keep the property as a manufactured home community for at least 50 years. The buyer must be resident-governed, the seller must have owned the property for the prior two years, and the law imposes recapture rules (including a 20% recapture tax on the buyer if the long-term covenant is broken). The credit is added to the general business credit and applies to taxable years beginning after December 31, 2026, with Treasury directed to write implementing regulations.