Tax credit would reward mobile home park sales to residents

What does this do?

S 4613 creates a federal tax credit equal to 75 percent of the profit a mobile home park owner makes when selling to residents or a qualifying nonprofit. The seller must have owned the property for at least two years, and the buyer must commit to operating it as a manufactured housing community for at least 50 years. The credit would apply to tax years beginning after December 31, 2026.

Who does it affect?

Park owners considering a sale are directly affected, as the credit is designed to make selling to residents financially attractive. The roughly 22 million Americans living in manufactured homes, many of them low- and moderate-income households, are also directly affected as current or potential residents of these communities.

Why does it matter?

In resident-owned communities, lot rent increases average less than 1 percent per year, compared to nearly 6 percent per year in commercially owned parks. Residents who do not own their land remain vulnerable to rent increases, park closures, and costly forced moves if ownership shifts to commercial investors or developers.

What does it cost, and who pays?

• 75% profit tax credit for qualifying sellers
• 50-year use requirement for buyers
• 20% penalty tax on early resale

Where does it stand?