The U.S. House of Representatives passed a long-anticipated tax reform package, the One Big Beautiful Bill Act, early Thursday morning that included several major victories for members of the National Association of REALTORS®.
NAR’s advocacy team successfully secured its top five tax priorities in the bill—provisions that directly support NAR members and the broader real estate economy.
The bill permanently increases the qualified business income deduction from 20% to 23%, providing meaningful tax relief to the more than 90% of NAR members who are independent contractors or small business owners. It also quadruples the state and local tax deduction cap from $10,000 to $40,000 for households earning under $500,000, though the marriage penalty remains in place. The bill makes the current individual tax rates permanent and indexes them for inflation, a move backed by 86% of voters in NAR’s national survey. In addition, it preserves and makes permanent the mortgage interest deduction, which remains a crucial benefit for current and future homeowners. Finally, the legislation protects Section 1031 like-kind exchanges and leaves business SALT deductions intact for most real estate professionals. Those deductions are critical tools for property investment and economic development.
In addition to NAR’s top tax priorities, the bill includes a broad range of other REALTOR®-supported provisions, such as enhancements to the low-income housing tax credit, estate tax certainty, renewed Opportunity Zone incentives, and the creation of tax-advantaged child investment accounts that can be used for qualified expenses of the beneficiary such as first-time home purchases—all of which strengthen housing affordability, investment, and generational wealth.
In a voter survey recently commissioned by the National Association of REALTORS®, 80% of voters supported key provisions that impact the real estate economy, from deductions for small businesses to incentives for community investment and housing development. For example, 91% of voters supported retention of the MID, and 61% of voters support increasing the state and local tax deduction issue or removing limits altogether. The national survey of 1,000 registered voters was commissioned by NAR and conducted by Public Opinion Strategies and Hart Research April 3–6, 2025. It has a margin of error of 3.10%
“We appreciate House leaders for taking this important step with this tax reform bill, which supports hardworking families and strengthens the real estate economy. With lower tax rates, SALT relief, and new incentives for small businesses and community development, this proposal brings real benefits to everyday Americans,” says Shannon McGahn, NAR executive vice president and chief advocacy officer.
Republican members of the bipartisan SALT Caucus from high-tax states such as New York and California played a pivotal role in shaping the outcome of the bill’s SALT provisions.
With House approval secured, the bill now moves to the Senate for further consideration.
“While significant changes are possible as this bill moves to the Senate, NAR will stay closely engaged with lawmakers to ensure real estate remains a central focus,” McGahn says. “We are committed to advocating for provisions that expand opportunity, support homeownership, strengthen communities nationwide, and put the American Dream within reach for more families.”
