The sweeping tax reform signed into law on July 4 by President Donald Trump, includes significant wins for the real estate professionals, consumers and the economy.
In many cases, the National Association of REALTORS® has been working for years on legislative priorities included in the final package:
- Permanent extension of individual tax rates that went into effect in 2017
- Permanent qualified business income deduction (Section 199A)
- Quadrupling of the state and local tax (SALT) deduction cap for five years beginning with the 2025 tax year
- Protection for business SALT deductions and 1031 like-kind exchanges
- Permanent extension of the mortgage interest deduction
‘Backbone of the Real Estate Economy’
“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,” Shannon McGahn, NAR’s executive vice president and chief advocacy officer, said after the final bill passed the House July 3. “This bill reflects what happens when REALTORS® work together to educate lawmakers and advocate for policies that benefit every American.”
In a press release issued Jan. 3, NAR listed additional provisions expected to strengthen real estate and the general economy, including an increase in the Child Tax Credit and a strengthened Opportunity Zone program.
The Noteworthy Role of REALTORS®
NAR’s advocacy efforts accelerated as Congress moved toward passage of the One Big Beautiful Bill Act.
“For months, REALTORS® across America have been at the forefront of tax reform, making sure Congress understood that homeownership is not only the cornerstone of the American Dream but a foundation for building wealth and strengthening communities,” Shannon McGahn, NAR’s executive vice president and chief advocacy officer, said after the final bill passed the House July 3. “We delivered that message backed by original research, trusted polling data, and the real-world expertise of more than a million REALTORS® living and working in every ZIP code in America.”
In the weeks leading up to passage of the bill, NAR released original polling showing overwhelming public support for the bill’s real estate provisions:
- 92% support tax-free savings accounts for first-time home buyers
- 91% support preserving tax incentives like the mortgage interest deduction
- 86% support lower individual income tax rates
- 83% support the 20% deduction for independent contractors and small businesses
- 61% support increasing or eliminating SALT deduction limits
“We brought these numbers directly to Capitol Hill and to the White House,” McGahn said in her July 3 statement. “Lawmakers repeatedly told us they appreciated the research, the clear message, and the voices of REALTORS® advocating in their communities. This is what happens when our members—backed by facts and united in purpose—speak up.”
Watch REALTOR® Magazine for additional guidance on specific provisions in the OBBBA that impact real estate professionals.