Real Estate Implications of the One Big Beautiful Bill Act: Challenges and Opportunities

On July 4, 2025, OBBBA was signed into law by President Trump. OBBBA extends many provisions of the Tax Cuts and Jobs Act of 2017 (TCJA) that were set to expire and made several key reforms to real estate and passthrough taxation permanent. OBBBA is generally viewed as favorable for the real estate industry and investors. 

Some key changes that OBBBA provides for real estate investors, developers, and owners include the permanent 20% pass-through deduction; new markets tax credit; renewal and enhancement of the qualified opportunity zone (QOZ) program; revisions to the REIT asset test; restoration of 100% bonus depreciation for certain real estate assets; immediate expensing of qualified production property; and restoration of the low-income housing tax credit program. 

Some notable real estate tax provisions that remain unchanged include Section 1031 like-kind exchanges, the taxation of carried interest, and the pass-through entity tax workaround for the state and local tax cap. Also, the controversial "retaliatory tax," was ultimately dropped from the final Act. This tax would have been imposed on persons who are residents of or have a sufficient nexus to certain foreign countries, which would have been difficult for real estate funds with foreign investors.

Listen as our authoritative panel discusses the important real estate implications of OBBBA and steps investors, developers, and owners may want to consider to take advantage of these new tax incentives and credits. 

I. Introduction: OBBBA overview and history

II. OBBBA's implications for the real estate industry and investors

A. Business interest limitation based on EBITDA

B. Qualified business income deduction

C. Immediate expensing of qualified production property

D. Bonus depreciation

E. Increased limitation for expensing certain depreciable assets

F. Renewed and expanded QOZ program

G. REIT asset test

H. Changes to real estate tax credits

I. Other notable provisions

III. Provisions excluded from the final act

IV. Best practices for assisting clients with the new requirements

V. Practitioner takeaways

The panel will discuss these and other key considerations:

• How does OBBBA extend or modify the real estate-specific provisions of the TCJA?
• What OBBBA provisions are aimed at the real estate industry, and what opportunities and challenges do they present?
• What tax provisions remained unchanged with the recent legislation?
• How can owners, investors, and developers take advantage of these new tax credits and incentives?