By: Patrick Newton
NAR secured its top five legislative priorities to support homeownership and strengthen the real estate economy.
The U.S. Senate on Tuesday passed sweeping tax reform legislation—packed with major real estate provisions championed by the National Association of REALTORS®—advancing the measure toward final approval.
The U.S. House of Representatives passed its version of the One Big Beautiful Bill on May 22. It is expected to take up and approve the Senate-amended version in the coming days, sending the legislation to the president’s desk for signature shortly thereafter.
NAR successfully secured its top five priorities in the final package, alongside several other provisions that support homeownership and strengthen the real estate economy.
“We’ve worked for months to educate Congress through original NAR research, analysis and polling to demonstrate the value and broad support for the many real estate provisions in this bill,” says NAR Executive Vice President and Chief Advocacy Officer Shannon McGahn. “Congressional leaders were receptive to our message. Our team had many conversations with lawmakers, and they thanked us for our public support and for providing the data they needed to support these provisions.”
NAR remained at the negotiating table through the final hours. “We were invited to the White House on Friday—just days before the final vote—to continue advocating for our members and consumers as the Senate version took shape,” McGahn says. “The administration and Congress respect the voice of our members and the roles they play as leaders in their communities. We are an army of advocates living and working in every ZIP code in America with a unique insight into the state of the economy.”
NAR’s Top Five Real Estate Wins
The bill includes NAR’s five key priorities:
- A permanent extension of lower individual tax rates
- An enhanced and permanent qualified business income deduction (Section 199A)
- A temporary (five-year) quadrupling of the state and local tax (SALT) deduction cap, beginning for 2025
- Protection for business SALT deductions and 1031 like-kind exchanges
- A permanent extension of the mortgage interest deduction
“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,” McGahn says. “Real estate makes up nearly one-fifth of the entire U.S. economy, and we made sure policymakers understood that homeownership is the essential component to building wealth and a strong, prosperous middle class.”
Additional Wins for the Real Estate Economy
Several other provisions in the bill championed by NAR add to its positive impact on the real estate sector:
- Low-Income Housing Tax Credit (LIHTC): Key provisions from the LIHTC Improvement Act are included on a permanent basis to support affordable housing development.
- Child Tax Credit Increased to $2,200: Permanently raises the credit, with inflation indexing. This provision could ease housing affordability for families.
- Permanent Estate and Gift Tax Threshold Set at $15 Million (Inflation-Adjusted): Prevents a sharp drop in exemption levels and supports generational wealth transfer.
- No Increase to the Top Individual Tax Rate: The proposed 39.6% rate was removed from the bill.
- Restoration of Key Business Provisions:
- Full expensing of research and development
- Bonus depreciation
- Fixes to the interest expense deduction limit
- Immediate Expensing for Certain Industrial Structures: Applies to facilities used in manufacturing, refining, agriculture and related industries.
- No Changes to Carried Interest Rules
- Strengthened Opportunity Zones: Renewed with revised incentives to promote targeted investment, including in rural areas. NAR polling found that 80% of voters support such tax incentives to drive economic development in underserved communities.
*Read the full article here: https://www.nar.realtor/magazine/real-estate-news/senate-passes-tax-bill-with-major-wins-for-real-estate
