BREAKING NEWS: Major Wins for Real Estate and Homeownership
In a landmark decision early this morning, the U.S. House of Representatives passed the One Big Beautiful Bill Act, delivering a major victory for the real estate industry. Backed by strong advocacy from the National Association of REALTORS® (NAR), the bill secures critical tax provisions that aim to support homeowners, investors, and real estate professionals alike.
What’s in the Bill for Real Estate?
NAR successfully championed five key tax priorities—each designed to bolster housing affordability, strengthen investment incentives, and expand access to homeownership.
1. Enhanced Small Business Tax Deduction
The Qualified Business Income (QBI) deduction has been increased from 20% to 23%, benefiting the vast majority of real estate professionals who operate as independent contractors or small business owners.
2. Expanded State and Local Tax (SALT) Deduction
The SALT deduction cap is quadrupled—from $10,000 to $40,000—for households earning under $500,000. Although the marriage penalty remains, this change provides substantial tax relief, especially in higher-tax states.
3. Permanent Individual Tax Rates
The bill makes the lower tax rates from the 2017 Tax Cuts and Jobs Act permanent and indexes them for inflation—helping preserve affordability for homebuyers nationwide.
4. Mortgage Interest Deduction (MID) Protected
The Mortgage Interest Deduction remains untouched, offering continued support to homeowners and preventing disruption in the housing market. NAR reports 91% of voters favor keeping this benefit.
5. 1031 Like-Kind Exchanges Preserved
Section 1031 exchanges, crucial for investors and commercial real estate deals, remain fully intact—despite prior concerns about their elimination.
More Wins: Affordability, Development & Wealth Building
In addition to NAR’s top tax priorities, the bill includes several broader provisions designed to promote housing affordability, community development, and generational wealth:
Low-Income Housing Tax Credit (LIHTC): Expanded to spur more affordable housing construction.
Child Tax Credit Boosted: Temporarily increased to $2,500 through 2028, then indexed for inflation—helping families with rising living costs.
New Tax-Advantaged Child Investment Accounts: Can be used for first-time home purchases and other qualifying expenses.
Estate & Gift Tax Certainty: The exemption is set at $15 million, adjusted for inflation—supporting long-term wealth transfer.
Opportunity Zones Revived: Incentives renewed to stimulate investment in underserved and rural communities.
Full Expensing & Bonus Depreciation Restored: Key provisions for commercial and industrial development, R&D, and manufacturing structures.
What This Means for Homeowners, Investors, and the Market
According to a recent NAR survey, Americans overwhelmingly support provisions that enhance affordability and economic opportunity:
86% support permanent lower tax rates.
83% support the small business QBI deduction.
80% support Opportunity Zone incentives to boost development in struggling communities.
“This bill supports hardworking families and strengthens the real estate economy,” said Shannon McGahn, NAR’s executive vice president of advocacy. “We’ll continue working with lawmakers to ensure real estate stays front and center as the bill moves to the Senate.”
Final Thoughts
While the Senate may introduce changes, the current version of the One Big Beautiful Bill Act represents a significant step forward for buyers, sellers, real estate professionals, and communities across the country.
Stay tuned for updates as the bill progresses—and if you have questions about how these changes could impact your homeownership goals or investments, we're always here to help.
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