The ‘One Big Beautiful Bill’ and the Manufactured Housing Institute

After deliberation in the U.S. House of Representatives, the U.S. Senate, and then the House again, the comprehensive reconciliation bill (H.R. 1, the One Big Beautiful Bill Act) has successfully passed through Congress and was signed by the President into law on July 4.

Several provisions in the bill reflect priorities that directly benefit the manufactured housing industry and its workforce:

• Permanent extension of lower individual tax rates
• Section 199A deduction (qualified business income deduction of 20% of net income) is made permanent
• In years 2025 thru 2029, increase in the state and local tax (SALT) deduction from $10,000 to $40,000 – phased out for taxpayers with MAGI over $500,000
• Protection for business SALT dedications and 1031 like-kind exchanges
• Reinstatement of the deduction for mortgage insurance (MI)
• Significant boost in the volume of Low-Income Housing Tax Credits (LIHTC), along with provisions to create more flexibility for the use of the credits
• Immediate expensing for certain industrial structures applicable to facilities used in manufacturing, refining, and related industries
• Opportunity Zones renewed, allowing new designation of Opportunity Zones with stricter low-income requirements and higher basis boosts for Opportunity Zones in rural areas
• Taxes on overtime pay and tips eliminated up to set caps of $12,500 and $25,000 respectively with slower income phaseout
• The estate and gift tax is permanently extended and increased from $10 to $15 million starting in 2026

While the bill includes many provisions that benefit the manufactured housing industry, it also ends the 45L tax credit for new energy-efficient homes by June 30, 2026. Other energy tax credits did not fare as well with shorter sunset periods.