Big Beautiful Bill: Big Wins for Real Estate

The Big Beautiful Bill was just signed into law, and it includes several major updates that directly benefit the real estate industry.

Here’s what you need to know:

Mortgage Interest Deduction Made Permanent

The mortgage interest deduction has been extended and made permanent for the first $750,000 in home acquisition debt.

SALT Deduction Cap Increased

The cap on State and Local Tax (SALT) deductions has been temporarily raised from $10,000 to $40,000.

This is a big win for investors and homeowners in high-tax states like California and New York.

Affordable & Multifamily Housing Incentives Expanded

The Low-Income Housing Tax Credit (LIHTC) has been extended:

• Temporarily renews an increase in 9% LIHTC Allocations to 12.5%
• The bond financing requirement for the 4% credit has been reduced from 50% to 25%.

Opportunity Zones Made Permanent

• The Opportunity Zone tax incentive is now permanent, with rolling 10-year designations beginning in 2027
• New credits for rural OZs include a 30% basis increase after five years and lower thresholds for qualifying improvements.

100% Bonus Depreciation & QPP Expensing

• The bill reinstates 100% bonus depreciation for qualifying property purchased and placed in service after January 19, 2025, through at least 2029–2030
• Nonresidential real estate used in production like manufacturing facilities is now eligible for full expensing, helping investors and developers accelerate write-offs on major capital improvements.

As always, seek professional tax advice to see how these benefits impact your unique situation!

PS: The real estate industry is rapidly changing. Join the Launch Party and find out how you can stay ahead of the game!