Key Details:
- The newly passed Senate tax bill highlights five major wins for real estate, including a permanent mortgage interest deduction and a five-year quadrupling of the SALT cap starting in 2025.
- Additional provisions include a $2,200 Child Tax Credit, a $15 million estate tax exemption, and expanded Opportunity Zones backed by 80% of voters.
A sweeping tax reform bill just cleared the Senate. And it’s packed with wins for the real estate industry, homeowners, and future buyers.
The National Association of REALTORS® (NAR) secured its top five legislative priorities in the Senate-passed “One Big Beautiful Bill,” a tax package now headed to the House for final approval.
The House passed its original version on May 22 and is expected to greenlight this updated version soon, sending it to the president’s desk for signature.
NAR’s Chief Advocacy Officer, Shannon McGahn, said:
“These provisions form the backbone of the real estate economy, from supporting first-time and first-generation buyers to strengthening investment in housing supply and protecting existing homeowners.”
Byron Lazine broke down what this means for agents and their clients in today’s episode of The Hot Sheet.
What’s in the Bill? NAR’s Five Big Wins
Here’s what made it into the final package. And it’s every item on NAR’s real estate policy wish list:
- Permanent extension of lower individual tax rates: A core priority for preserving middle-class affordability.
- Enhanced and permanent 20% qualified business income deduction (Section 199A): A win for independent contractors and small business owners, including real estate professionals.
- Temporary quadrupling of the SALT deduction cap: Starting in 2025, the $10,000 cap increases fourfold for five years, easing the tax burden on homeowners in high-tax states.
- Protection of business SALT deductions and 1031 like-kind exchanges, preserving vital investment incentives.
- Permanent mortgage interest deduction: One of the most widely supported tax benefits for homeowners.
These aren’t just industry perks. They have real-world implications for clients considering their first home, investment property, or generational wealth transfer.
More Provisions That Affect the Housing Market
In addition to NAR’s top five, the bill includes several other measures aimed at boosting housing supply, improving affordability, and strengthening the overall economy:
- Low-Income Housing Tax Credit (LIHTC): Key provisions from the LIHTC Improvement Act are permanently included to support affordable housing development.
- Child Tax Credit Increased to $2,200, indexed for inflation. This added financial relief could help families offset housing costs.
- Permanent estate and gift tax exemption set at $15 million (adjusted for inflation), helping preserve generational wealth.
- Restoration of key business provisions, including full expensing of R&D, bonus depreciation, and fixes to interest expense deduction limits.
- Immediate expensing for industrial structures, including those used in manufacturing and agriculture.
- No increase to the top individual tax rate – the proposed 39.6% rate was removed.
- Opportunity Zones renewed, with stronger incentives to encourage targeted investment in underserved and rural communities.
Why Builders Are Backing It
The bill also won praise from the National Association of Home Builders (NAHB). Chairman Buddy Hughes shared this in a public statement:
“NAHB commends the Senate for passing the One Big Beautiful Bill Act. This legislation will help spur economic growth and allow our members to invest more resources in multifamily rental construction, land development to build more single-family homes, and new equipment to expand their businesses. In turn, this will create a better business climate that allows builders to increase the nation’s housing supply, which is crucial to help ease America’s housing affordability crisis. We urge the House to move quickly to pass this bill.”
More housing supply. Lower tax burdens. Stronger financial incentives to invest in real estate.
If you’re working with buyers or sellers this summer, this bill gives you a new reason to revisit those conversations.
NAR’s Polling Backed It, Overwhelmingly
NAR’s internal polling, conducted in May, helped seal the deal with lawmakers by showing broad bipartisan support for real estate-friendly provisions. Among the most notable findings:
- 92% support tax-free savings accounts for first-time home buyers
- 91% support preserving the mortgage interest deduction
- 86% support maintaining lower-income tax rates for individuals and married couples
- 83% support the 20% business income deduction
- 61% support raising or eliminating SALT deduction caps
Byron reviewed all of NAR’s reported wins in today’s Hot Sheet, reinforcing his view that advocacy is NAR’s #1 strength and value-add for both real estate professionals and consumers:
“The ONE thing I’ve always said NAR does really well–they’re special at it, they’re phenomenal—is lobbying in DC… I think it’s the only thing they should focus on: advocacy.”
Takeaways for Agents
NAR’s article on real estate wins from the newly passed tax bill is more than just policy talk. It’s a conversation starter with your buyers, sellers, and sphere.
A few key takeaways to work into your conversations and real estate content:
- These tax changes can directly impact your clients’ financial decisions, especially first-time buyers and investors.
- The expanded SALT deduction and mortgage interest deduction make homeownership more attractive in high-tax states.
- Builders will have more incentive (and resources) to increase supply, which could ease inventory pressure in the coming years.
Don’t forget to watch today’s Hot Sheet for Byron’s full breakdown. And keep this info in your back pocket for your next client consultation.
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