The "One Big Beautiful Bill Act" (H.R. 1), passed by Congress and signed into law in July 2025, includes several provisions impacting the real estate industry. Here’s a summary of the key changes based on available information:
1. **State and Local Tax (SALT) Deduction**: - The bill increases the SALT deduction cap from $10,000 to $40,000 for taxpayers with adjusted gross income (AGI) below $500,000 ($250,000 for married filing separately), effective for 2025. The cap increases by 1% annually from 2026 to 2033, then remains at that level in the House version, but reverts to $10,000 in 2030 in the Senate version. This benefits homeowners in high-tax states by allowing greater deductions for property taxes. However, the House version eliminates SALT cap workarounds for certain pass-through entities, while the Senate version preserves them. (https://www.eisneramper.com/insights/real-estate/big-beautiful-bill-act-real-estate-provisions-0525/) (https://www.rismedia.com/2025/07/01/big-beautiful-bill-advances-senate-vote/) (https://www.cnbc.com/guide/the-big-beautiful-bill-act-senate-republican/)
Sadly the SALT Deduction is irrelevant in Mississippi with our low State and local tax burdens and the fact that few residents’ SALT-eligible taxes exceed even the prior $10,000 cap. It may benefit a small number of high-income or high-property-value taxpayers, but the broader impact on Mississippi’s real estate market or individual tax situations is limited.
2. **Qualified Business Income (QBI) Deduction**: - The Section 199A QBI deduction for pass-through businesses (common in real estate, e.g., partnerships, S corporations) is made permanent and increased from 20% to 23% starting in 2026. The House version replaces phase-out rules based on W-2 wages and capital investment with a new two-step framework for taxpayers above income thresholds, enhancing tax benefits for real estate professionals and investors. (https://www.eisneramper.com/insights/real-estate/big-beautiful-bill-act-real-estate-provisions-0525/)[](https://www.claconnect.com/en/resources/blogs/real-estate/proposed-one-big-beautiful-bill-may-impact-real-estate)[](https://www.bipc.com/one-big-beautiful-bill-simplified)
3. **Bonus Depreciation**: - The bill reinstates 100% bonus depreciation for qualified property (e.g., machinery, equipment, certain property improvements) acquired and placed in service after January 19, 2025, through January 1, 2030. It also introduces a new 100% depreciation allowance for nonresidential real property classified as "qualified production property" (e.g., used for manufacturing or refining), incentivizing commercial real estate investment. (https://www.eisneramper.com/insights/real-estate/big-beautiful-bill-act-real-estate-provisions-0525/)[](https://www.bipc.com/one-big-beautiful-bill-simplified)
4. **Section 179 Deduction**: - The maximum Section 179 expense deduction for depreciable business assets (e.g., equipment) increases from $1 million to $2.5 million, with a phase-out threshold raised to $4 million, adjusted for inflation after 2025. This supports real estate businesses investing in equipment or property improvements. (https://www.claconnect.com/en/resources/blogs/real-estate/proposed-one-big-beautiful-bill-may-impact-real-estate)[](https://www.bipc.com/one-big-beautiful-bill-simplified)
5. **Low-Income Housing Tax Credit (LIHTC)**: - The LIHTC program is enhanced: the 9% credit is restored to its 2021 level with a 12.5% allocation increase for 2026–2029, the 4% credit’s bond-financing threshold is lowered to 25% for projects financed post-2025 through 2030, and Tribal and rural areas are designated as Difficult Development Areas (DDAs). These changes encourage affordable housing development. (https://www.claconnect.com/en/resources/blogs/real-estate/proposed-one-big-beautiful-bill-may-impact-real-estate)
6. **Opportunity Zones**: - The Qualified Opportunity Zone (QOZ) program is made permanent with modified eligibility and additional reporting requirements. This incentivizes investment in distressed communities, potentially boosting real estate development in these areas. (https://www.eisneramper.com/insights/real-estate/big-beautiful-bill-act-real-estate-provisions-0525/)[](https://www.bipc.com/one-big-beautiful-bill-simplified)[](https://www.bipc.com/one-big%2C-beautiful-bill-.-.-.-simplified)
7. **Mortgage Interest Deduction**: - The bill preserves the mortgage interest deduction but makes permanent the Tax Cuts and Jobs Act (TCJA) reductions: acquisition indebtedness is limited to $750,000 ($375,000 for married filing separately) for loans after December 15, 2017, and home equity loan interest deductions remain suspended. This maintains homeowner tax benefits but at reduced levels compared to pre-TCJA. (https://www.eisneramper.com/insights/real-estate/big-beautiful-bill-act-real-estate-provisions-0525/)[](https://www.rismedia.com/2025/07/01/big-beautiful-bill-advances-senate-vote/)
8. **Like-Kind Exchanges (Section 1031)**: - The bill preserves Section 1031 like-kind exchanges, allowing real estate investors to defer capital gains taxes on property swaps, supporting investment and property improvement. (https://www.rismedia.com/2025/07/01/big-beautiful-bill-advances-senate-vote/) (https://www.whitehouse.gov/articles/2025/05/what-they-are-saying-one-big-beautiful-bill-clears-house/)
9. **Interest on Rural/Agricultural Real Estate Loans**: - A new provision excludes 25% of interest income from qualified real estate loans (secured by rural or agricultural property) from gross income for certain lenders (e.g., FDIC-insured banks, Farmer Mac). This encourages lending for rural and agricultural real estate development. (https://www.congress.gov/bill/119th-congress/house-bill/1/text) (https://www.bipc.com/one-big%2C-beautiful-bill-.-.-.-simplified)
Sadly, this is limited to specific participating lenders.
The interest income exclusion for rural and agricultural real estate loans is likely to have a positive impact in Mississippi by encouraging lenders to provide more financing for farmers and rural developers. This could enhance access to capital, reduce borrowing costs, and stimulate agricultural and rural real estate markets, particularly in Mississippi’s heavily rural and agricultural regions. However, the extent of the impact depends on how many lenders participate, the specifics of loan eligibility, and broader economic conditions.
10. **Potential Housing Market Impacts**: - The bill’s increased federal deficit (estimated at $3.3 trillion over 10 years by the Congressional Budget Office) could lead to higher interest rates, potentially reducing housing affordability. Cuts to safety net programs like Medicaid and SNAP may reduce disposable income for low- and middle-income households, impacting their ability to afford housing. (https://realestate.usnews.com/real-estate/articles/how-the-one-big-beautiful-bill-act-could-affect-housing) (https://www.bbc.com/news/articles/c0eqpz23l9jo)
- Some X posts claim the bill includes provisions for selling public land for housing, but this is not detailed in primary sources and remains unconfirmed.
The National Debt Death Spirals appears to have taken 2nd place behind deporting the 65M estimated illegal immigrants in the USA. Remain on track, they all go back. US Citizens remain, everybody else... out.
11. **Removed Provisions**: - A proposed ban on state-level AI regulation (relevant to real estate due to AI-powered tools) was removed from the final Senate version, allowing states to regulate AI technologies used in real estate. (https://www.rismedia.com/2025/07/01/big-beautiful-bill-advances-senate-vote/)
**Critical Notes**: - The bill’s real estate provisions generally favor investors, developers, and higher-income homeowners through tax breaks and incentives, but cuts to safety net programs and potential deficit-driven interest rate hikes could negatively affect affordability for lower-income households. (https://www.washingtonpost.com/business/interactive/2025/trump-big-beautiful-bill-your-taxes-cuts/) (https://realestate.usnews.com/real-estate/articles/how-the-one-big-beautiful-bill-act-could-affect-housing)
Good. The Federal Government should stay out of the way of the AI revolution at this point and allow the market to work its magic through competition, cooperation and State/Local Level corruption. Let Subsidiarity work.
Context: Subsidiarity is a principle of social and organizational management that holds decisions should be made at the lowest level capable of effectively addressing the issue, rather than by a centralized authority, unless higher-level intervention is necessary.
The National Association of REALTORS® (NAR) supports the bill for preserving key real estate tax provisions, indicating industry approval. (https://www.rismedia.com/2025/07/01/big-beautiful-bill-advances-senate-vote/)[](https://www.whitehouse.gov/articles/2025/05/what-they-are-saying-one-big-beautiful-bill-clears-house/)
These changes aim to stimulate real estate investment and development, particularly in commercial and affordable housing sectors, but long-term affordability concerns remain due to macroeconomic effects. For detailed impacts, consult professionals, as provisions may vary slightly between House and Senate versions, though the House passed the Senate-amended bill on July 3, 2025.
(https://www.cbsnews.com/news/house-vote-big-beautiful-bill-rules-committee/) (https://frostbrowntodd.com/one-big-beautiful-bill-act-enacts-a-permanent-increase-in-the-estate-and-gift-tax-lifetime-exclusion-amount-for-2025-and-later-years/)-and-gift-tax-lifetime-exclusion-amount-for-2025-and-later-years/)
Conclusion: Some good, some bad, some irrelevant to Mississippi.
1. **State and Local Tax (SALT) Deduction**: - The bill increases the SALT deduction cap from $10,000 to $40,000 for taxpayers with adjusted gross income (AGI) below $500,000 ($250,000 for married filing separately), effective for 2025. The cap increases by 1% annually from 2026 to 2033, then remains at that level in the House version, but reverts to $10,000 in 2030 in the Senate version. This benefits homeowners in high-tax states by allowing greater deductions for property taxes. However, the House version eliminates SALT cap workarounds for certain pass-through entities, while the Senate version preserves them. (https://www.eisneramper.com/insights/real-estate/big-beautiful-bill-act-real-estate-provisions-0525/) (https://www.rismedia.com/2025/07/01/big-beautiful-bill-advances-senate-vote/) (https://www.cnbc.com/guide/the-big-beautiful-bill-act-senate-republican/)
Sadly the SALT Deduction is irrelevant in Mississippi with our low State and local tax burdens and the fact that few residents’ SALT-eligible taxes exceed even the prior $10,000 cap. It may benefit a small number of high-income or high-property-value taxpayers, but the broader impact on Mississippi’s real estate market or individual tax situations is limited.
2. **Qualified Business Income (QBI) Deduction**: - The Section 199A QBI deduction for pass-through businesses (common in real estate, e.g., partnerships, S corporations) is made permanent and increased from 20% to 23% starting in 2026. The House version replaces phase-out rules based on W-2 wages and capital investment with a new two-step framework for taxpayers above income thresholds, enhancing tax benefits for real estate professionals and investors. (https://www.eisneramper.com/insights/real-estate/big-beautiful-bill-act-real-estate-provisions-0525/)[](https://www.claconnect.com/en/resources/blogs/real-estate/proposed-one-big-beautiful-bill-may-impact-real-estate)[](https://www.bipc.com/one-big-beautiful-bill-simplified)
3. **Bonus Depreciation**: - The bill reinstates 100% bonus depreciation for qualified property (e.g., machinery, equipment, certain property improvements) acquired and placed in service after January 19, 2025, through January 1, 2030. It also introduces a new 100% depreciation allowance for nonresidential real property classified as "qualified production property" (e.g., used for manufacturing or refining), incentivizing commercial real estate investment. (https://www.eisneramper.com/insights/real-estate/big-beautiful-bill-act-real-estate-provisions-0525/)[](https://www.bipc.com/one-big-beautiful-bill-simplified)
4. **Section 179 Deduction**: - The maximum Section 179 expense deduction for depreciable business assets (e.g., equipment) increases from $1 million to $2.5 million, with a phase-out threshold raised to $4 million, adjusted for inflation after 2025. This supports real estate businesses investing in equipment or property improvements. (https://www.claconnect.com/en/resources/blogs/real-estate/proposed-one-big-beautiful-bill-may-impact-real-estate)[](https://www.bipc.com/one-big-beautiful-bill-simplified)
5. **Low-Income Housing Tax Credit (LIHTC)**: - The LIHTC program is enhanced: the 9% credit is restored to its 2021 level with a 12.5% allocation increase for 2026–2029, the 4% credit’s bond-financing threshold is lowered to 25% for projects financed post-2025 through 2030, and Tribal and rural areas are designated as Difficult Development Areas (DDAs). These changes encourage affordable housing development. (https://www.claconnect.com/en/resources/blogs/real-estate/proposed-one-big-beautiful-bill-may-impact-real-estate)
6. **Opportunity Zones**: - The Qualified Opportunity Zone (QOZ) program is made permanent with modified eligibility and additional reporting requirements. This incentivizes investment in distressed communities, potentially boosting real estate development in these areas. (https://www.eisneramper.com/insights/real-estate/big-beautiful-bill-act-real-estate-provisions-0525/)[](https://www.bipc.com/one-big-beautiful-bill-simplified)[](https://www.bipc.com/one-big%2C-beautiful-bill-.-.-.-simplified)
7. **Mortgage Interest Deduction**: - The bill preserves the mortgage interest deduction but makes permanent the Tax Cuts and Jobs Act (TCJA) reductions: acquisition indebtedness is limited to $750,000 ($375,000 for married filing separately) for loans after December 15, 2017, and home equity loan interest deductions remain suspended. This maintains homeowner tax benefits but at reduced levels compared to pre-TCJA. (https://www.eisneramper.com/insights/real-estate/big-beautiful-bill-act-real-estate-provisions-0525/)[](https://www.rismedia.com/2025/07/01/big-beautiful-bill-advances-senate-vote/)
8. **Like-Kind Exchanges (Section 1031)**: - The bill preserves Section 1031 like-kind exchanges, allowing real estate investors to defer capital gains taxes on property swaps, supporting investment and property improvement. (https://www.rismedia.com/2025/07/01/big-beautiful-bill-advances-senate-vote/) (https://www.whitehouse.gov/articles/2025/05/what-they-are-saying-one-big-beautiful-bill-clears-house/)
9. **Interest on Rural/Agricultural Real Estate Loans**: - A new provision excludes 25% of interest income from qualified real estate loans (secured by rural or agricultural property) from gross income for certain lenders (e.g., FDIC-insured banks, Farmer Mac). This encourages lending for rural and agricultural real estate development. (https://www.congress.gov/bill/119th-congress/house-bill/1/text) (https://www.bipc.com/one-big%2C-beautiful-bill-.-.-.-simplified)
Sadly, this is limited to specific participating lenders.
The interest income exclusion for rural and agricultural real estate loans is likely to have a positive impact in Mississippi by encouraging lenders to provide more financing for farmers and rural developers. This could enhance access to capital, reduce borrowing costs, and stimulate agricultural and rural real estate markets, particularly in Mississippi’s heavily rural and agricultural regions. However, the extent of the impact depends on how many lenders participate, the specifics of loan eligibility, and broader economic conditions.
10. **Potential Housing Market Impacts**: - The bill’s increased federal deficit (estimated at $3.3 trillion over 10 years by the Congressional Budget Office) could lead to higher interest rates, potentially reducing housing affordability. Cuts to safety net programs like Medicaid and SNAP may reduce disposable income for low- and middle-income households, impacting their ability to afford housing. (https://realestate.usnews.com/real-estate/articles/how-the-one-big-beautiful-bill-act-could-affect-housing) (https://www.bbc.com/news/articles/c0eqpz23l9jo)
- Some X posts claim the bill includes provisions for selling public land for housing, but this is not detailed in primary sources and remains unconfirmed.
The National Debt Death Spirals appears to have taken 2nd place behind deporting the 65M estimated illegal immigrants in the USA. Remain on track, they all go back. US Citizens remain, everybody else... out.
11. **Removed Provisions**: - A proposed ban on state-level AI regulation (relevant to real estate due to AI-powered tools) was removed from the final Senate version, allowing states to regulate AI technologies used in real estate. (https://www.rismedia.com/2025/07/01/big-beautiful-bill-advances-senate-vote/)
**Critical Notes**: - The bill’s real estate provisions generally favor investors, developers, and higher-income homeowners through tax breaks and incentives, but cuts to safety net programs and potential deficit-driven interest rate hikes could negatively affect affordability for lower-income households. (https://www.washingtonpost.com/business/interactive/2025/trump-big-beautiful-bill-your-taxes-cuts/) (https://realestate.usnews.com/real-estate/articles/how-the-one-big-beautiful-bill-act-could-affect-housing)
Good. The Federal Government should stay out of the way of the AI revolution at this point and allow the market to work its magic through competition, cooperation and State/Local Level corruption. Let Subsidiarity work.
Context: Subsidiarity is a principle of social and organizational management that holds decisions should be made at the lowest level capable of effectively addressing the issue, rather than by a centralized authority, unless higher-level intervention is necessary.
The National Association of REALTORS® (NAR) supports the bill for preserving key real estate tax provisions, indicating industry approval. (https://www.rismedia.com/2025/07/01/big-beautiful-bill-advances-senate-vote/)[](https://www.whitehouse.gov/articles/2025/05/what-they-are-saying-one-big-beautiful-bill-clears-house/)
These changes aim to stimulate real estate investment and development, particularly in commercial and affordable housing sectors, but long-term affordability concerns remain due to macroeconomic effects. For detailed impacts, consult professionals, as provisions may vary slightly between House and Senate versions, though the House passed the Senate-amended bill on July 3, 2025.
(https://www.cbsnews.com/news/house-vote-big-beautiful-bill-rules-committee/) (https://frostbrowntodd.com/one-big-beautiful-bill-act-enacts-a-permanent-increase-in-the-estate-and-gift-tax-lifetime-exclusion-amount-for-2025-and-later-years/)-and-gift-tax-lifetime-exclusion-amount-for-2025-and-later-years/)
Conclusion: Some good, some bad, some irrelevant to Mississippi.
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