T
he US House of Representatives has passed a significant tax reform bill that brings substantial benefits to real estate investment, including permanent relief and expanded incentives for property development. A key provision is the increase in the qualified business income (QBI) deduction from 20% to 23%, providing meaningful tax relief to most real estate professionals.

    The bill also makes individual tax rates permanent and indexes them to inflation, a move supported by 86% of voters. The state and local tax (SALT) deduction cap has been quadrupled from $10,000 to $40,000 for households earning less than $500,000, while the mortgage interest deduction remains intact.

    The reform package includes measures to enhance affordability and long-term housing access, such as increasing the Low-Income Housing Tax Credit and renewing Opportunity Zone incentives. It also introduces tax-advantaged child investment accounts that can be used for qualified expenses, including first-time home purchases.

    Mortgage Bankers Association President Bob Broeksmit expressed support for the legislation, citing its potential to increase real estate investment in communities and improve financial outcomes for homeowners and renters. The bill's provisions align with strong voter sentiment, with 91% of respondents supporting preserving the mortgage interest deduction and 92% favoring tax-free savings accounts for first-time homebuyers.

    With House approval secured, the legislation moves to the Senate, where revisions are possible.