Sec. 202. Manufactured housing tax credit
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Subpart E of part IV of subchapter A of chapter 1 of subtitle A of the Internal Revenue Code of 1986 is amended by inserting after section 48E the following new section: For purposes of section 46, the manufactured housing credit for any taxable year is an amount equal to 20 percent of the qualified investment for such taxable year with respect to any qualified manufactured housing project of the taxpayer. For purposes of subsection (a), the term qualified investment means— with respect to a project described in subsection (c)(1)(A), the basis of any qualified property placed in service by the taxpayer during such taxable year which is part of a qualified housing manufacturing facility, and with respect to a project described in subsection (c)(2)(A), the sum of the following amounts which are paid or incurred by the taxpayer during the taxable year in carrying on any trade or business of the taxpayer with respect to qualified research and development: in-house research expenses (as defined in section 41(b)(2)), and contract research expenses (as defined in section 41(b)(3)).
Rules similar to the rules of subsections (c)(4) and
(d)of section 46 (as in effect on the day before the enactment of the Revenue Reconciliation Act of 1990) shall apply for purposes of this section. The amount which is treated as the qualified investment for all taxable years with respect to any qualified housing manufacturing facility or qualified research and development shall not exceed the amount designated by the Secretary as eligible for the credit under this section. For purposes of this section— The term qualified manufactured housing project means a project, any portion of the qualified investment of which is certified by the Secretary under subsection
(e)as eligible for a credit under this section— which equips, expands, or establishes a qualified housing manufacturing facility, or which facilitates qualified research and development. The term qualified property means property— which is tangible property, which is— constructed, reconstructed, or erected by the taxpayer, or acquired by the taxpayer if the original use of such property commences with the taxpayer, and which is integral to the operation of the qualified housing manufacturing facility. The term qualified property includes any building or its structural components which otherwise satisfy the requirements under subparagraph (A). Clause
(i)shall not apply with respect to a building or portion of a building used for offices, administrative services, or other functions unrelated to manufacturing. The term qualified housing manufacturing facility means a facility the primary purpose of which is the manufacturing of— manufactured housing, modular housing, panelized housing, or prefabricated housing. The terms manufactured housing , modular housing , panelized housing , and prefabricated housing have the respective meanings given such terms in section 207 of the . Prefabricated Housing and Zoning Enhancement Act of 2024 The term qualified research and development means research and development activities relating to— new methods or materials for prefabricated housing, manufactured housing, modular housing, or panelized housing, which enhance durability, efficiency, or cost-effectiveness in manufacturing, sustainable building practices and materials which reduce the environmental impact of such housing, and the use of advanced technologies, including automation, robotics, and smart home systems, in the manufacturing process. A credit shall not be allowed under this section for any qualified investment for which a credit is allowed under section 41 or 48D. The qualified investment with respect to any advanced manufacturing facility for any taxable year shall not include that portion of the basis of any property which is attributable to qualified rehabilitation expenditures (as defined in section 47(c)(2)). Not later than 365 days after the date of enactment of this section, the Secretary shall establish a qualified manufactured housing investment program to consider and award certifications for qualified investments eligible for credits under this section. The total amount of credits that may be allocated under the program shall not exceed $3,000,000,000. Each applicant for certification under this paragraph shall submit an application containing such information as the Secretary may require during the 1-year period beginning on the date the Secretary establishes the program under paragraph (1). Each applicant for certification shall have 1 year from the date of acceptance by the Secretary of the application during which to provide to the Secretary evidence that the requirements of the certification have been met. An applicant which receives a certification shall have 3 years from the date of issuance of the certification in order to place the project in service and if such project is not placed in service by that time period, then the certification shall no longer be valid. In determining which projects to certify under this section, the Secretary shall— take into consideration only those projects where there is a reasonable expectation of commercial viability, and prioritize projects that— increase affordable housing stock, particularly for low- and moderate-income families, incorporate advanced manufacturing technologies and innovations that improve efficiency, reduce costs, or increase the quality of manufactured housing, align with local efforts to streamline zoning and permitting processes or those that comply with new local zoning reforms, demonstrate the ability to make use of additional private or public funding, are ready to begin construction or implementation within a short time frame, and use replicable, scalable construction methods that can align with varying regional building code requirements. Not later than 1 year after the date of enactment of this section, the Secretary shall review the credits allocated under this section as of such date. Rules similar to the rules of subparagraphs
(B)and
(C)of section 48C(d)(4) shall apply. The Secretary shall, upon making a certification under this subsection, publicly disclose the identity of the applicant and the amount of the credit with respect to such applicant. The Secretary shall issue such regulations or other guidance as may be necessary or appropriate to carry out the purposes of this section. . Section 46 of such Code is amended in paragraph
(6)by striking and at the end, in paragraph
(7)by striking the period at the end and inserting , and , and by adding at the end the following new paragraph: the manufactured housing credit. . The table of sections for subpart D of part IV of subchapter A of chapter 1 of subtitle A of such Code is amended by adding at the end the following new item: Sec. 48F. Manufactured housing credit. . The amendments made by this section shall take effect on the date of the enactment of this Act.