A bill to 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.

Bill overview

S. 4613 (119th Congress) proposes amending the Internal Revenue Code of 1986 to create a new business credit related to gains from the sale of real property that is used as a manufactured home community. The bill is introduced in the Senate and referred to the Committee on Finance. Sponsors include Senators Angus King, Richard Blumenthal, and Jeanne Shaheen.

Purpose and intent

• Establish a nonrefundable business credit intended to incentivize the sale of real property that will be used as a manufactured home community.
• The credit aims to support the development, conversion, or rehabilitation of real estate for purpose-built manufactured housing communities, potentially increasing available housing stock in this sector.

Key provisions and changes

• Creation of a new business credit tied to gains from the sale of suitable real property.
• Eligibility criteria (to be detailed in the bill text) would determine when a sale qualifies for the credit, including:
  • The type of real property (specifically, property intended for use as a manufactured home community).
  • The nature of the gain (likely capital gains related to the sale).
• Mechanics of the credit (to be specified in the full text) could include:
  • Credit rate or calculation method (e.g., a percentage of qualified gains).
  • Limitations or caps on the credit.
  • Any applicable phaseouts by income or other thresholds.
  • Interaction with other tax credits and deductions.
• Compliance and reporting requirements for taxpayers claiming the credit.

Who/what would be affected

• Taxpayers selling qualifying real property intended for use as a manufactured home community could be eligible to claim the credit.
• Real estate developers, investors, and entities involved in the sale or redevelopment of manufactured home community properties.
• Potential indirect effects on the manufactured housing sector, including affordability, development activity, and financing dynamics, depending on credit uptake.

Procedural and timeline aspects

• Introduced in the Senate and referred to the Committee on Finance for consideration.
• Read twice and placed in the Finance Committee on May 20, 2026.
• No further action details provided in the current summary; potential steps include committee markup, passage by the Senate, reconciliation or amendments, and potential House consideration.

Potential implications and considerations

• Economic impact: The credit could stimulate transactions and investment in manufactured home communities, potentially increasing supply of affordable housing options.
• Revenue impact: As a new tax credit, it would reduce federal revenue subject to its size, structure, and any phaseouts.
• Administration: Taxpayers would need clear guidance on eligibility, documentation for gains, and compliance reporting.

For a complete understanding, the full text of S. 4613 would clarify eligibility specifics, credit amount, duration, sunset provisions (if any), and interaction with existing tax credits and incentives.