Tax Reform Bill Clears House With Key Real Estate Provisions
Louisiana REALTORS® • May 23, 2025
The House of Representatives early this morning passed the One Big Beautiful Bill Act that delivers significant wins for the real estate sector, reinforcing tax provisions long championed by the National Association of REALTORS®.
NAR’s advocacy team successfully secured its top five tax priorities in the bill, including an enhanced small business tax deduction, a strengthened state and local tax deduction, and protections for the mortgage interest deduction. The bill also makes the current lower individual tax rates permanent and increases the child tax credit, moves that could help increase homeownership access for more American families.
In addition to NAR’s top tax priorities, the bill includes a broad range of other NAR-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.
“We appreciate House leaders for taking this important step with a bill that 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.
“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.”
In a recent national survey commissioned by NAR, Americans expressed strong support for retaining provisions in the 2017 Tax Cuts and Jobs Act critical to the real estate economy and homeownership. Fully 76% of voters are aware of efforts to extend the Tax Cuts and Jobs Act. Among those familiar with the law, support grows significantly when specific provisions are highlighted—86% back lower income tax rates for individuals and married couples, 83% support a new 20% deduction for independent contractors and small businesses earning under $400,000, and 80% favor tax incentives aimed at spurring investment in underserved communities.
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%.
Below is a summary of the provisions included in the current bill:
Top Five NAR Tax Priorities
1. Qualified Business Income Deduction (Section 199A)
- The bill permanently increases the QBI deduction from 20% to 23%.
- This deduction benefits more than 90% of NAR members, who are classified as independent contractors or small business owners.
- 83% of voters said they supported the 20% tax deduction for independent contractors and small businesses making less than $400,000 a year, according to NAR’s national poll.
2. State and Local Tax Deduction (SALT)
- The SALT deduction cap is quadrupled from $10,000 to $40,000 for households earning under $500,000. However, the bill does not eliminate the marriage penalty. Thus, whether taxpayers are single filers or married couples filing a joint return, they can deduct a maximum of $40,000 in state and local taxes. The income cap and deduction both grow 1% every year over a 10-year window.
3. Individual Tax Rates
- Current individual tax rates, lowered as part of the TCJA, are made permanent and indexed for inflation, aiding taxpayers and improving affordability for prospective homebuyers.
- 86% of voters support the lowered income tax rates for individuals and married couples, according to NAR’s national poll.
4. Mortgage Interest Deduction (MID)
- The draft preserves and makes permanent the MID at its current level, maintaining a key tax benefit for homeowners and supporting housing market stability.
- There had been concern MID might be reduced or eliminated as a budget offset
- 91% of voters support maintaining tax incentives such as the mortgage interest deduction for homeowners, according to the NAR poll.
5. Business SALT and 1031 Like-Kind Exchanges
- The draft bill protects Section 1031 like-kind exchanges, which are often erroneously regarded as a tax loophole.
- It also includes no changes for most businesses deducting state and local taxes (sometimes referred to as “Business SALT").
- While the bill does provide limits in state-level business SALT workarounds for certain high-income professionals (e.g., law firms, hedge funds, consulting businesses, and other services), the provisions do not appear to impact real estate professionals.
Additional Positive Tax Provisions for Real Estate Economy
- Low-Income Housing Tax Credit (LIHTC)
- Key provisions from the LIHTC Improvement Act will be included to support affordable housing development.
- Child Tax Credit Increased to $2,500 (2025–2028)
- Temporarily raises the child tax credit through 2028 and then indexes it for inflation starting in 2029.
- The child tax credit supports families and could help with housing affordability.
- Creation of Tax-Advantaged Child Investment Accounts
- Can be used for qualified expenses of the beneficiary such as first-time home purchases.
- Permanent Estate and Gift Tax Threshold Set at $15 Million (Inflation-Adjusted)
- Prevents a significant drop in exemption levels and supports generational wealth transfer, aligning with NAR priorities.
- No Top Tax-Rate Increase
- The proposed 39.6% top rate was removed from the bill.
- Restoration of "Big 3" Business Tax Provisions
- Full expensing of research and development (R&D)
- Bonus depreciation
- Fixes to interest expense deduction limits
- Immediate Expensing for Certain Industrial Structures
- Applies to structures used in manufacturing, refining, agriculture and related industries.
- No Change to Carried Interest Treatment
- Opportunity Zones
- Renewed with revised incentives to encourage targeted investment, including in rural areas.
- 80% of voters expressed support for tax incentives for investors to encourage economic growth and development in underserved and poorer communities, according to NAR’s recent national poll.
Louisiana REALTORS® spent week six of the Legislative Session actively engaged on several bills at the Capitol impacting core industry priorities, including private property rights, affordability, redevelopment and transaction-related regulations. Most of the meaningful activity remained in the House, where lawmakers continued advancing measures with direct implications for the real estate market. HB 284 by Rep. John Wyble , which would authorize certain local governments to expropriate blighted property by declaration-of-taking, failed on final passage in the House Tuesday by a 48-47 vote, and remains subject to reconsideration. Meanwhile, HB 472 by Rep. Alonzo Knox , which would authorize rent stabilization at the local level, was voluntarily deferred in committee following testimony from Louisiana REALTORS® and our partners at the Louisiana Apartment Association effectively ending its path this session. This marks a significant win, as rent control policies do not address housing supply challenges and instead risk further market distortion. In House Commerce, several key bills moved forward. HB 1027 by Rep. Troy Hebert , which clarifies that appraisers are not liable for a seller’s failure to meet smoke and carbon monoxide detector requirements, passed committee unanimously and is now slated for a House floor vote. This common-sense measure protects appraisers and helps preserve efficiency in the transaction process. HB 673 by Rep. Tammy Phelps , which would have imposed new security camera mandates on certain blighted properties, was also voluntarily deferred following industry opposition. Additionally, HB 426 by Rep. Phelps , which addresses criminal blighting and expands enforcement liability, remains under consideration. Louisiana REALTORS® is monitoring this bill closely to ensure efforts to address blight do not unintentionally discourage investment or redevelopment. We continue to track broader market integrity and redevelopment efforts. HB 468 by Rep. Hebert , addressing residential wholesaling, has now moved to the Senate after unanimous House passage. HB 217 by Rep. Chance Henry , which provides tax incentives for the rehabilitation of blighted property, also remains active in the Senate and represents a constructive approach to redevelopment. Looking ahead, the House Commerce Committee will consider HB 1166 by Rep. Kim Carver next week, which addresses disclosure requirements for vacant residential property. Louisiana REALTORS® supports clear, consistent consumer disclosures and have been working closely with the author and the Louisiana Real Estate Commission to ensure the bill is structured to promote transparency while maintaining practical standards and avoiding unintended liability for real estate professionals. Overall, the House carried the bulk of real estate activity this week, while the Senate saw limited movement on major REALTOR® priorities. As the session continues, Louisiana REALTORS® remains focused on protecting private property rights, opposing harmful market interventions, supporting responsible redevelopment and advancing policies that strengthen real estate transactions for both consumers and our members. Please view the weekly bill tracking report provided by our lobbying team over at Harris, DeVille and Associates.
This week at the Capitol, Louisiana REALTORS® saw meaningful movement on several issues that directly impact the real estate industry. Most notably, HB 468 by Representative Troy Hebert, a key part of our legislative agenda, passed the House unanimously, 96–0, and now heads to the Senate. The bill creates a clear framework for regulating residential real estate wholesaling, strengthens disclosure requirements and gives the Louisiana Real Estate Commission enforcement authority, including penalties for violations. That vote margin speaks for itself and reflects strong bipartisan support for greater transparency and accountability in this market segment. We are also closely engaged on legislation tied to blight, redevelopment and property rights. HB 217 by Representative Chance Henry, which authorizes an optional property tax exemption for blighted or derelict properties that have been rehabilitated, and ties that exemption to local redevelopment plans, passed the House floor by an 84–12 vote. It is now moving through the Senate process. Louisiana REALTORS® supports HB 217 because it creates another tool to encourage redevelopment, return distressed property to productive use and strengthen communities when implemented responsibly. Louisiana REALTORS® also support Representative John Wyble’s HB 284 , which would authorize certain parishes and municipalities to address blighted property through a declaration-of-taking process in limited jurisdictions. HB 284 is currently subject to a call on House final passage. While any proposal involving expropriation deserves careful attention, we support the goal of giving communities practical tools to deal with truly blighted and abandoned property that drags down surrounding neighborhoods, depresses property values and slows local recovery. Insurance remains one of the biggest issues of the session and continues to affect housing affordability and market stability across Louisiana. Lawmakers are working on proposals to reduce premiums, increase competition and improve the overall insurance climate. The Fortified Roof Program continues to generate significant discussion and, candidly, a fair amount of noise, but Louisiana REALTORS® and our coalition partners are actively monitoring all avenues to ensure the final result is practical and beneficial for homeowners, and the broader real estate market. These conversations remain closely tied to tort reform, which continues to be a major part of the effort to address insurance costs and availability. We are also monitoring HB 673 by Representative Phelps , which would authorize the state fire marshal to require owners or lessees of abandoned or blighted structures to install and maintain exterior security cameras and retain footage for at least 30 days. Louisiana REALTORS® opposes this bill because it creates a costly new mandate on property owners without addressing the root causes of blight, and it could create additional liability and compliance burdens for property owners, property managers and others involved in distressed property. At this time, the bill remains pending in the House Commerce Committee and is slated to be heard next week. We also remain actively engaged on several other priorities within our legislative agenda including ongoing work on vacant property disclosure and efforts to provide greater clarity on appraiser liability related to carbon monoxide detector requirements. In particular, we are working closely with the Louisiana Real Estate Commission and Representative Carver to position HB 1166 in the strongest and most workable posture possible, with a clear focus on protecting Louisiana real estate agents and their clients from unnecessary liability, reducing confusion in the transaction process, and ensuring that any new disclosure requirements are practical, fair and clearly defined. Our goal is to ensure the final product supports consumer transparency without imposing undue burdens on our members and not exposing agents across Louisiana to unintended risk. As the session continues, Louisiana REALTORS® will remain focused on protecting consumers, supporting responsible redevelopment, defending private property rights and advancing sound policy that strengthens the real estate market for our members and the clients they serve. Please view the weekly bill tracking report provided by our lobbying team over at Harris, DeVille and Associates.
This week, the Legislature remained in high gear, and several items relevant to Louisiana’s real estate market moved into focus. The biggest headline for our industry this week was HB 468 by Rep. Troy Hebert , our wholesaling/consumer-protection bill, was slated to be heard on the House floor, however was bumped due to floor congestion and out-of-order bills. It is now expected to be reset for next Tuesday. This bill remains one of the clearest “market integrity” efforts on the board with clearer rules for non-traditional transactions, stronger transparency and better consumer protections. We also continued substantive policy work behind the scenes. We are actively engaging with Rep. Carver on a vacant land disclosure bill he has authored, and we appreciate that he is welcoming our input and guidance as the language is refined. Our goal is straightforward: ensure any vacant land disclosure framework is practical, reduces confusion and avoids unintentionally shifting liability or enforcement burdens onto real estate professionals. In addition, we were pleased to deepen our relationships at the Capitol this week. We had the privilege of hosting a lunch for the Governor’s Office, enjoyed meeting Governor Landry’s team, and look forward to working with them in a constructive, solutions-oriented manner as the session continues. Finally, Rep. Hebert also filed an additional measure that aligns with our legislative agenda and speaks directly to transaction risk management: HB 1027 , which would limit liability for licensed real estate appraisers in situations involving smoke and carbon monoxide detector compliance. The current law already provides that real estate agents are not liable for a seller’s failure to comply with Louisiana’s detector requirements in one- or two-family dwellings. HB 1027 would extend that same liability protection to licensed appraisers by amending R.S. 40:1581(F). This is a clean, common-sense clarification that helps prevent appraisers from being pulled into compliance disputes that properly belong with the seller’s statutory obligations. Next week, committees are scheduled to hear multiple bills relevant to real estate, including measures involving construction and roofing standards (often tied to insurance and mitigation), property rights/expropriation, and property tax and adjudicated property issues that can influence housing supply and neighborhood reinvestment. We will stay closely engaged and will flag any bills or amendments that materially affect transactions, homeownership costs or private property rights. Please view the weekly bill tracking report provided by our lobbying team over at Harris, DeVille and Associates.
