The "Manufactured Housing Community Sustainability Act of 2026" introduces a new business tax credit designed to encourage the sale of manufactured home communities to resident-owned cooperatives or qualified nonprofit organizations. This legislative effort aims to preserve critical affordable housing options for the millions of Americans residing in manufactured homes, many of whom are low-income and susceptible to displacement due to community sales or escalating rents. The bill underscores the vital role these communities play, particularly in rural areas, and highlights the benefits of resident ownership in stabilizing housing costs and fostering community stability. Specifically, the bill amends the Internal Revenue Code to provide a credit amounting to 75% of the "qualified gain" realized by a taxpayer from such a sale. To be eligible for this credit, the real property must be acquired for its continued use as a manufactured home community, and the seller must have maintained ownership of the property for at least two years prior to the sale. A crucial requirement is that the property must be transferred with a binding covenant, ensuring its dedication as a manufactured home community for a minimum of 50 years, or the longest term permissible under state law. A "qualified manufactured home community cooperative or corporation" is defined as a state-established cooperative or nonprofit entity where membership primarily comprises residents, and governance is conducted by an equitably elected board of directors. Both the seller and the purchaser are required to execute an affidavit confirming that the sale adheres to these stipulations, with the purchaser acknowledging potential liability for a 20% tax on net proceeds if the covenant is violated. This measure seeks to promote resident ownership and long-term affordability by mitigating financial risks for sellers and safeguarding the future of these essential communities.