‘‘(C) 
MEMBER.—The 
term 
‘member’ 
means— 
‘‘(i) an individual— 
‘‘(I) has attained the age of 18, 
‘‘(II) is entitled by reason of the 
individual’s membership interest to 
execute an occupancy agreement with 
the manufactured home community 
cooperative nonprofit with respect to 
one site in the manufactured home 
community for the purposes of situ-
ating a manufactured home owned by 
the member or, as permitted by the 
manufactured community cooperative 
or corporation, the member’s trust or 
other entity, and 
‘‘(III) is a resident of the manu-
factured home community, and 
‘‘(ii) a tax exempt organization. 
‘‘(5) 
MEMBERSHIP
INTEREST.—The 
term 
‘membership interest’ means an ownership interest 
in a manufactured home community cooperative or 
corporation or a membership interest in a manufac-
tured home community nonprofit corporation. 
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‘‘(6) MANUFACTURED HOME.—The term ‘man-
ufactured home’ means a structure, transportable in 
one or more sections, which— 
‘‘(A) in the traveling mode, is 8 body feet 
or more in width and 40 body feet or more in 
length, or when erected on site, is 320 square 
feet or more, 
‘‘(B) is built on a permanent chassis and 
designed to be used as a dwelling (with or with-
out a permanent foundation when connected to 
required utilities) and includes plumbing, heat-
ing, and electrical heating systems, and 
‘‘(C) in the case of a structure manufac-
tured after June 15, 1976, is certified as meet-
ing the Manufactured Home Construction and 
Safety Standards issued under the National 
Manufactured Housing Construction and Safety 
Standards Act of 1974 (42 U.S.C. 5401–5426) 
by the Department of Housing and Urban De-
velopment and displays a label of such certifi-
cation on the exterior of each transportable sec-
tion. 
‘‘(c) SPECIAL RULES.— 
‘‘(1) RELATED PERSON.—For purposes of sub-
section (b)(2)(A), a person (hereafter in this sub-
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paragraph referred to as the ‘related person’) is re-
lated to the seller if— 
‘‘(A) the related person bears a relation-
ship to the seller specified in section 267(b) or 
707(b)(1), or 
‘‘(B) the related person and the seller are 
engaged in trades or businesses under common 
control (within the meaning of subsections (a) 
and (b) of section 52). 
‘‘(2) 
ELECTION
BY
BOTH
SELLER
AND 
BUYER.—The credit is allowable under this section 
only if— 
‘‘(A) elected by both the seller and the 
buyer of the real property and evidenced by an 
affidavit executed by both parties, and 
‘‘(B) the buyer of the real property records 
the affidavit and the affidavit is referenced in 
its deed to the real property. 
The seller shall elect the credit under this section on 
its return of tax. 
‘‘(d) TAX UPON VIOLATION OF COVENANT.—There 
is imposed a tax on the buyer for a violation of the cov-
enant specified in subsection (b)(2)(B). The amount of 
such tax shall be 20 percent of the net proceeds after set-
tlement for the sale or exchange of the real property re-
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ferred to in subsection (b)(2). For purposes of section 
501(a), the tax imposed by this subsection shall not be 
treated as a tax imposed by this subtitle. 
‘‘(e) REGULATIONS.—The Secretary shall issue such 
regulations or other guidance as may be necessary to carry 
out this section, including the recapture of the tax benefit 
under this section in any case in which the real property 
described in subsection (b) is not used as a manufactured 
home community for at least 50 years.’’. 
(b) CREDIT ALLOWED AS PART OF GENERAL BUSI-
NESS CREDIT.—Section 38(b) of such Code is amended 
by striking ‘‘plus’’ at the end of paragraph (35), by strik-
ing the period at the end of paragraph (36) and inserting 
‘‘, plus’’, and by adding at the end the following new para-
graph: 
‘‘(37) the manufactured home community sale 
credit determined under section 45S(a).’’. 
(c) CONFORMING AMENDMENTS.— 
(1) Subsection (c) of section 196 of such Code 
is amended by striking ‘‘and’’ at the end of para-
graph (13), by striking the period at the end of 
paragraph (14) and inserting ‘‘, and’’, and by add-
ing at the end the following new paragraph: 
‘‘(15) the manufactured home community sale 
credit determined under section 45S(a).’’. 
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(2) The table of sections for subpart D of part 
IV of subchapter A of chapter 1 of such Code is 
amended by adding at the end the following new 
item: 
‘‘Sec. 45S. Manufactured home community sale to residents or nonprofit enti-
ty.’’. 
(d) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2017. 
Æ 
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