T
he U.S. Senate has passed a sweeping tax reform bill, which includes major real estate provisions championed by the National Association of REALTORS (NAR). The House of Representatives previously approved its version of the bill on May 22 and is expected to pass the Senate-amended version in the coming days. NAR successfully secured its top five priorities in the final package, along with several other provisions that support homeownership and strengthen the real estate economy.

    "We've worked tirelessly to educate Congress about the value and broad support for these real estate provisions," says NAR Executive Vice President Shannon McGahn. "Congressional leaders were receptive to our message, and we're grateful for their efforts."

    NAR's Top Five Real Estate Wins include:

    * A permanent extension of lower individual tax rates

    * An enhanced and permanent qualified business income deduction (Section 199A)

    * A temporary quadrupling of the state and local tax (SALT) deduction cap, beginning in 2025

    * Protection for business SALT deductions and 1031 like-kind exchanges

    * A permanent extension of the mortgage interest deduction

    "These provisions are crucial to supporting first-time and first-generation buyers, strengthening investment in housing supply, and protecting existing homeowners," McGahn says.

    Additional wins for the real estate economy include:

    * Permanent Estate and Gift Tax Threshold Set at $15 Million (Inflation-Adjusted)

    * No Increase to the Top Individual Tax Rate

    * Restoration of Key Business Provisions, including full expensing of research and development and bonus depreciation

    * Strengthened Opportunity Zones with revised incentives to promote targeted investment

    NAR polling found that 80% of voters support tax incentives to drive economic development in underserved communities. The latest episode of The Advocacy Scoop podcast breaks down key wins and discusses how the bill took shape through the "Byrd Bath" process in the Senate.

    The bill also includes a newly included provision establishing "baby bonds," which could provide significant funds toward a first home once the child reaches adulthood. NAR polling played a critical role in building support for real estate provisions, with 92% of voters supporting tax-free savings accounts for first-time home buyers and 86% supporting lower individual tax rates.