The real estate world just got some big updates. Since the government spending bill in late 2022, a newer tax/spending law (“One Big Beautiful Bill”) passed in 2025 made important changes that affect homeowners, investors, and the housing market. Here’s what matters.
Key Wins & What They Mean
| What Changed | Why It Helps You |
|---|---|
| Tax Relief for Homeowners & Real Estate Professionals | • Mortgage interest deduction is now permanently kept. • The state and local tax (SALT) deduction cap was raised from $10,000 → $40,000 (but only for households making under $500,000). • Qualified Business Income (QBI) Deduction (helps many real estate agents, landlords, small business owners) was increased and made more stable. |
| Affordable Housing & Investment Incentives | • Low‑Income Housing Tax Credit (LIHTC) was expanded—so more incentives for building or preserving affordable housing. • Protection of “like‑kind exchanges” (Section 1031) helps property investors swap investments without big tax hits. • Opportunity Zones (areas incentivized for investment) got renewed support. |
| Family / Wealth Building Supports | • Child Tax Credit boosted to ~$2,200 (temporarily) and indexed to inflation later. That helps families manage housing + living costs. • Higher estate & gift tax exemption (i.e. more property/wealth can be passed on without big tax. Helps generational wealth). |
| More Stable Tax Rates | The lower tax rates set under the 2017 law are now made permanent and will be adjusted for inflation. That gives homeowners more predictability. |
What Still Matters from the 2022 Spending Package
Some things from that older package are still in effect or have been built upon:
- Funding for programs like community‑development grants (for low/moderate income neighborhoods) and homelessness aid are still going strong.
- Rental assistance and HUD budget lines got boosts in recent appropriations.
What to Watch Out For
- SALT deduction limits are higher now, but for many people in high‑tax states, this relief helps a lot. For others, less so.
- Some provisions are “temporary” (for example, child tax credit changes), so stay alert to whether they’re renewed.
- Housing affordability remains tight. Even with tax incentives, challenges like land cost, zoning, interest rates, labor, and materials still push prices up.
Source: REALTOR® Magazine
“21 Real Estate Wins in Government Spending Package”
National Association of REALTORS®
Reprinted with permission
