NAR celebrates passage of the ‘Big Beautiful Bill’

The National Association of Realtors (NAR) praised the narrow passage of President Donald Trump’s One Big Beautiful Bill Act — a sweeping tax reform measures that includes a slate of real estate-related provisions.

Last week, the legislation passed the House of Representatives by a vote of 218-214, which followed a 50-50 vote in the Senate that was broken by Vice President J.D. Vance.

Trump signed the bill into law during a July 4 White House ceremony.

“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 in a statement.

“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.”

The bill includes several long-sought policy priorities for the organization, including:

• A permanent extension of lower individual income tax rates
• A permanent 20% qualified business income deduction (Section 199A)
• A five-year, fourfold increase (moving from $10,000 to $40,000) to the state and local tax (SALT) deduction cap beginning in 2025
• Continued 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 said. “This bill reflects what happens when Realtors work together to educate lawmakers and advocate for policies that benefit every American.”

“(SALT cap changes) will be welcome news to owners or purchasers of property in areas where real estate taxes, even on run of the mill properties, often exceed $10,000 a year,” said Marty Green, principal at law firm Polunsky Beitel Green. “However, taxpayers with adjusted gross income of $600,000 or more will not benefit from the SALT tax changes, as the benefit phases out 30% for each dollar of adjusted gross income over $500,000.

“The other side of the equation, though, is whether interest rates increase due to the perception that the bill will cause federal deficits to expand unacceptably.”

Broader impacts

Beyond core housing issues, the bill includes several additional tax provisions with implications for the real estate and broader business communities. These include:

• Permanent improvements to the Low-Income Housing Tax Credit
• A $2,200 child tax credit indexed to inflation
• A permanent $15 million estate and gift tax threshold
• Full expensing for research and development
• Bonus depreciation
• Immediate expensing for industrial structures
• Expanded Opportunity Zone incentives aimed at driving economic development, including in rural areas

The legislation also establishes a new “baby bonds” program — providing a one-time $1,000 government contribution for every child born after the law takes effect. The funds are intended to help future generations build long-term wealth, including saving for a first home.

NAR pointed to polling data it commissioned in the final stages of the legislative process to help persuade lawmakers of the bill’s public support. According to the trade group, several provisions have high levels of approval.

“We brought these numbers directly to Capitol Hill and to the White House,” McGahn said. “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.”