House Resolution 1 “The One Big Beautiful Bill Act” In-Depth Analysis; The Latest NAR Advocacy Scoop Podcast - Beyond the Tax Bill: What’s Next for Advocacy?; Downpayment Toward Equity Act Reintroduced
In this week’s GAD Top 3, we dive into what’s going on with real estate policy at the national level with content courtesy of the National Association of REALTORS® (NAR). First, we take a look back and dive into the details of important tax provisions to real estate professionals and on real property investment in United States House Resolution (H.R.) 1 “The One Big Beautiful Bill Act”. Then we look ahead via NAR’s latest Advocacy Scoop Podcast - “Beyond the Tax Bill: What’s Next for Advocacy?”. Ending with the reintroduction of the Downpayment Toward Equity Act, NAR supported legislation that would provide $100 billion in direct assistance to help first-time, first-generation homebuyers purchase their home.
1. House Resolution 1 “The One Big Beautiful Bill Act” In-Depth Analysis
Following a long and difficult congressional process that started early this year, President Trump on July 4th signed into law H.R. 1, “The One Big Beautiful Bill Act” (the Act). This enormous piece of legislation includes a number of important tax provisions that will have a large impact on real estate professionals and on real property investment.
H.R. 1 Highlights:
- The 20 percent Qualified Business Income Deduction (Section 199A) is made permanent and slightly improved. This was the largest single tax reduction for most REALTORS® and other independent contractors and owners of pass-through businesses from the Tax Cuts and Jobs Act of 2017 (TCJA), but it was scheduled to expire at the end of 2025. Its extension and enhancement prevent a nasty tax hike that otherwise would have hit most real estate professionals in a few months.
- The reduced tax rates, higher standard deduction, and increased child tax credit initiated by the TCJA, which were set to expire at the end of 2025, are extended permanently and enhanced. This means that any resulting shock to the economy from the scheduled higher taxes starting in 2026 has been dodged and that more households may be able to afford to own or purchase a home than otherwise could.
- The $10,000 state and local tax (SALT) deduction limit from the TCJA is temporarily multiplied to $40,000 for tax years 2025 through 2029. However, for those with higher incomes (modified adjusted gross income - MAGI) of more than $500,000, the limit will be decreased by 30 percent of the excess of MAGI over the threshold until it reaches the minimum SALT deduction of $10,000. The SALT limit and threshold are increased by 1 percent for 2026 through 2029 but in 2030, the cap permanently reverts to $10,000. This means that for this and the next four years, many more current and prospective homeowners will be able to receive federal tax benefits for owning and purchasing a home and will have lower taxes.
- Opportunity Zones are extended permanently, including the full exclusion of capital gain on OZ investments held for 10 years, and strengthened. Beginning in 2027, the Act provides a rolling, 5-year deferral period for prior gain that is invested in an opportunity fund, which ends the prior problem of a shrinking OZ tax incentive as the statutory recognition date for deferred gain approaches. The Act also provides that the OZ census tracts are to be redesignated by state governors every 10 years and redefines low-income census tracts eligible for OZ designation as those with a median income of 70 percent of the statewide median level (down from 80 percent). Further, OZ investments will be eligible for a 10 percent basis increase after 5 years, and additional tax incentives are provided for rural Opportunity Zones.
- The Estate and Gift Tax threshold is set permanently to $15 million per person, plus adjustments for future inflation. The higher threshold that was established by TCJA was set to fall to just $5 million per person (plus inflation adjustments) in 2026. This change will ensure that many family-owned real estate businesses will not be subject to confiscatory taxes when passed from one generation to another.
- The Act increases, permanently, the allocation of low-income housing credits to states by 12 percent and permanently lowers the requirement for private bond financing for these projects without a state credit allocation from 50 percent to 25 percent. This is projected to result in the creation of over a million additional apartments throughout the nation over the next decade.
- The Act broadens 529 Education Savings Accounts to allow them to be used for expenses related to acquiring and maintaining professional credentials such as real estate licenses and career training.
For more information on the OBBB including other real estate related items, what was left out, and impact on other real estate stakeholders, click here.
2. The Latest NAR Advocacy Scoop Podcast - “Beyond the Tax Bill: What’s Next for Advocacy?”
Tax reform is done, but advocacy work continues. In Episode 18 of the Advocacy Scoop Podcast, Shannon McGahn and Patrick Newton explain how NAR is ensuring key REALTOR® provisions are implemented properly and what comes next in advocacy, from housing inventory and affordability to state and local efforts.
This episode underscores how advocacy doesn’t stop at the federal level: more than two-thirds of NAR’s work happens in partnership with state and local associations. It’s a great reminder of the broad reach of REALTOR® advocacy.
Episode’s Key Highlights:
- Effective implementation of NAR-supported tax provisions
- Legislative work on housing inventory and affordability
- The often-overlooked impact of state and local advocacy
3. Downpayment Toward Equity Act Reintroduced
Representative Maxine Waters (CA), along with representatives Al Green (TX), Ayanna Pressley (MA), and Sylvia Garcia (TX), reintroduced the Downpayment Toward Equity Act (H.R. 4069) this week, legislation that would provide $100 billion in direct assistance to help first-time, first-generation homebuyers purchase their home.
The bill provides up to $20,000 for first-generation homebuyers and up to $25,000 for socially and economically disadvantaged homebuyers. The assistance can be used for down payments, closing costs, and mortgage interest rate buydowns. Eligibility extends to those with incomes up to 120% of area median income (or 180% in high-cost areas) and includes homebuyer education and counseling.
H.R. 4069 seeks to address persistent barriers facing communities that have been historically excluded from homeownership. Historically, housing discrimination has prevented millions of Americans from building intergenerational wealth, creating lasting obstacles to homeownership. Without family wealth to draw upon, these communities are particularly impacted by rising housing costs and face greater challenges saving for a down payment, even if a family can afford a monthly mortgage payment. NAR's 2024 Profile of Home Buyers and Sellers demonstrates these disparities, showing that 83% of recent home buyers identified as White or Caucasian, while only 7% identified as Black/African American, 6% as Hispanic/Latino, and 4% as Asian/Pacific Islander. Homeownership remains a critical pathway to building generational wealth.
NAR supports this legislation. Shannon McGahn, NAR's senior vice president of government affairs, stated: "We applaud Ranking Member Waters' reintroduction of the Downpayment Toward Equity Act. This bill has the potential to be a meaningful step toward addressing long-standing disparities in wealth and homeownership, while expanding access for first-generation buyers. By directing assistance to those who need it most, the bill acknowledges that the greatest barrier to homeownership today isn't credit—it's cash. REALTORS® see firsthand how a lack of upfront funds keeps creditworthy Americans out of the market. We commend the leadership behind this legislation and look forward to supporting it as it moves through Congress."
All content in this GAD Top 3 is courtesy of the National Association of REALTORS®
