Kevin Sears President | Official website
The National Association of REALTORS (NAR) has expressed approval following the U.S. House of Representatives' passage of a significant tax reform bill, known as the One Big Beautiful Bill Act. The legislation passed narrowly with a vote of 218 to 214 and is now awaiting the President's signature to become law.
This bill incorporates several provisions advocated by NAR, aimed at promoting homeownership, encouraging investment in housing supply, and bolstering the real estate economy. This sector contributes nearly one-fifth of the nation's GDP.
Shannon McGahn, NAR’s executive vice president and chief advocacy officer, stated, “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.”
Key legislative priorities secured by NAR in this bill include:
- A permanent extension of lower individual tax rates
- A permanent qualified business income deduction (Section 199A)
- A temporary five-year increase in the state and local tax (SALT) deduction cap starting in 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 added.
Additional measures benefiting real estate include improvements to the Low-Income Housing Tax Credit, an increased Child Tax Credit indexed to inflation, a permanent $15 million estate and gift tax threshold, restoration of critical business provisions like full expensing for research and development, immediate expensing for industrial structures, and strengthened Opportunity Zones.
The bill also introduces a "baby bonds" program offering a one-time $1,000 government investment for each child born after enactment. These bonds aim to help future generations build wealth.
In its final stages, polling commissioned by NAR indicated strong public support for these 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 a 20% deduction for independent contractors and small businesses
- 61% support increasing or eliminating SALT deduction limits
McGahn remarked on this public backing: “We brought these numbers directly to Capitol Hill and to the White House. Lawmakers repeatedly told us they appreciated the research, the clear message, and the voices of REALTORS advocating in their communities.”
The National Association of REALTORS is America's largest trade association involved in all aspects of residential and commercial real estate. It represents professionals who adhere to its Code of Ethics.
