The National Association of REALTORS® applauded the House’s passage of the Republican tax reform package, the One Big Beautiful Bill Act, claiming it included “several major victories” for members of NAR. The bill now heads to the Senate for deliberation. 

Described by members as “very positive” for real estate, the tax plan now includes five provisions that were among NAR’s top priorities. 

These included expanded or preserved deductions for state and local taxes (SALT), qualified business income and mortgage interest. The plan, which was released by Republicans on the House Ways and Means Committee on May 12, also extends President Trump’s 2017 tax cuts and preserves like-kind exchanges for real estate and most business SALT deductions.  

“We appreciate House leaders for taking this important step with this tax reform bill, which supports hardworking families and strengthens the real estate economy,” Executive Vice President and Chief Advocacy Officer Shannon McGahn said. “With lower tax rates, SALT relief and new incentives for small businesses and community development, this proposal brings real benefits to everyday Americans.” 

Specifically, the proposed legislation:   

• Expands the qualified business income deduction used by many Realtors from 20% to 23%, which provides tax relief to more than 90% of NAR members who are independent contractors or small business owners. 

• Quadruples the SALT deduction cap from $10,000 to $40,000 for households earning under $500,000 per year.  

• Makes current individual tax rates permanent and indexes them for inflation.  

• Preserves the mortgage-interest deduction at its current level.  

• Leaves business SALT deductions largely untouched and preserves Section 1031 like-kind exchanges for business real estate and investment properties.  

NAR applauded other provisions of the tax plan as well, including a temporary increase in the child tax credit from $2,000 to $2,500, leaving the top tax rate at 37% and the estate and gift tax threshold at $15 million, and the inclusion of some provisions from the Low-Income Housing Tax Credit (LIHTC) Improvement Act.  

“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 said. “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.”