The House passed the One Big Beautiful Bill Act by a vote of 218 - 214 on July 3, 2025, and President Trump signed the bill into law on July 4, 2025. The National Association of REALTORS® supported the passage of the sweeping tax reform legislation that delivers significant victories for homeowners, consumers, real estate professionals, and the broader U.S. economy.
Top Five Legislative Priorities Secured by NAR
- A permanent extension of lower individual tax rates
- A permanent qualified business income deduction (Section 199A)
- A temporary (five year) quadrupling of the state and local tax (SALT) deduction cap, beginning in 2025
- Protection for business SALT deductions and 1031 like-kind exchanges
- A permanent extension of the mortgage interest deduction
Additional Real Estate Wins Included in the Tax Package
- Permanent improvements to the Low-Income Housing Tax Credit to support affordable housing development
- An increased Child Tax Credit of $2,200, indexed to inflation, helping ease housing costs for families
- A permanent $15 million estate and gift tax threshold, protecting generational wealth transfer
- Restoration of critical business provisions, including full expensing for research and development and bonus depreciation
- Immediate expensing for industrial structures, boosting investment in manufacturing, agriculture, and related industries
- Strengthened Opportunity Zones, renewing targeted incentives to drive economic development, including in rural areas
The bill also introduces a new “baby bonds” program—a one-time $1,000 government investment for each child born after the law’s enactment. Once matured, these bonds can help future generations build wealth, including saving for a first home.
NAR will be providing ongoing updates and guidance to members as well as working with Congress and the Administration to address additional concerns through future legislation and rulemaking. REALTORS® will need to continue to be engaged in the process.
REALTOR® Advocacy Made the Difference
In the final weeks, original polling commissioned by NAR showed 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
NAR Committee:
Federal Taxation Committee