When the One Big Beautiful Bill Tax Act (OBBB) passed, some touted its homebuyer benefits along with tax relief and economic revival. That was misleading. The truth is that the bill includes zero relief for today's home buyers and sellers. Only perks for developers and investors tie directly to the bill--along with tax advantages for the wealthy.
Direct perks for developers and investors that aren't a direct benefit to home buyers and sellers:
- Permanent Extension of 100% Bonus Depreciation: Allows businesses, including developers, to deduct the entire cost of certain assets in the year they're placed in service
- Expansion of Qualified Opportunity Zones (QOZs): Makes permanent the program offering investors tax deferrals and potential capital gains exclusions for investing in designated low-income areas (typically benefits the investors, not those most in need of housing)
- Increased Qualified Business Income (QBI) Deduction: Businesses organized as pass-through entities, including many real estate businesses, can continue to deduct 20% of their business income
- Expansion of Low-Income Housing Tax Credit (LIHTC): The Act increases the amount of LIHTC allocations and reduces the bond financing requirement for certain projects
Direct benefits to home buyers and sellers:
- None.
With all the suffering in the real estate market--rate-locked sellers, priced-out buyers--the deficit-busting giveaway to corporations and the wealthy offers not even a crumb of help for those who need it most.
From missed opportunities to strategic policies that will actually increase housing instability, the OBBB fails most Americans. Here's the breakdown in: The BBB Fallout Series
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