Implications of the One Big Beautiful Bill for Real Estate and Housing

July 15, 2025 - 01:45

On July 4, U.S. President Donald J. Trump enacted the extensive One Big Beautiful Bill Act, a legislative package spanning nearly 900 pages. This new law brings significant changes to the commercial real estate sector by extending key provisions from the 2017 Tax Cuts and Jobs Act. Notably, it reinstates bonus depreciation, which allows businesses to deduct a large percentage of the cost of assets upfront, thereby enhancing investment opportunities in real estate.

Additionally, the bill extends the Qualified Opportunity Zone Program, designed to stimulate economic growth in underdeveloped areas by providing tax incentives for investments. In a bid to address the affordable housing crisis, the legislation significantly expands the Low-Income Housing Tax Credit (LIHTC) program, which incentivizes the development of affordable rental housing.

However, the bill also introduces substantial cuts to incentives for wind and solar energy, indicating a shift in focus away from renewable energy initiatives. The overall impact of these changes will likely reshape investment strategies in both commercial real estate and affordable housing sectors across the nation.