What Property Owners should know regarding the OBBBA (One Big Beautiful Bill Act) signed into law on July 04, 2025

The One Big Beautiful Bill Act, signed into law on July 4, 2025, and what it could mean for you, whether you own a home, a rental property, or a commercial building. Here’s what to know:

 

For homeowners

 

• Private mortgage insurance and Federal Housing Administration premiums are now permanently deductible if you itemize. But keep in mind, the 2025 standard deduction is $15,750 (individual) or $31,500 (joint), so itemizing only makes sense if your deductions exceed that.
• Mortgage interest deductions are still allowed (up to $750,000 in loans) and now permanent.
• The SALT deduction cap for state/local taxes, including property taxes, has increased from $10,000 to $40,000, phasing out above $500,000 income. This cap expires in 2029.
• No new federal down payment assistance or first-time homebuyer tax credits are included, so look into local/state or employer programs for grants and closing cost support if you’re planning to buy.
• Key home energy tax credits are being phased out. The 30% Residential Clean Energy Credit for solar panels will expire after December 31, 2025, unless your system is installed by then. Credits for energy-efficient upgrades — like heat pump water heaters and insulation — will also end at the close of 2025. 

 

For commercial property owners, developers, and investors

 

• The 100% bonus depreciation is now permanent, applying to qualifying property placed in service on or after January 19, 2025.
• The 20% Qualified Business Income deduction is now permanent, with updated income phase‑out thresholds ($75k single, $150k joint).
• Opportunity Zone tax incentives are now permanent, including rolling 10‑year designations starting January 1, 2027, and expanded benefits, especially in rural zones.
• Section 179D expires June 30, 2026, allowing up to $5.81/sq ft deduction for qualifying energy‑efficient upgrades — but only for projects beginning before that date.
• Section 45L also extends only through June 30, 2026, providing up to $5,000 per unit for new or substantially renovated homes (ENERGY STAR/ZERH). Homes must be purchased or leased by that date to qualify. Also note that builders who completed qualifying homes in 2022 may be able to claim the credit retroactively by amending prior tax returns.

 

What to consider next

 

• If you own a home, review whether itemizing makes sense based on your mortgage interest, insurance, and property tax amounts. If you’re planning to purchase or build, explore state and local housing programs and financing options. 
• Further, if you’ve been contemplating solar or energy-saving home improvements, now is the time to act before these incentives disappear.
• For developers and commercial property owners, consider accelerating energy-efficient upgrades to take advantage of 179D and 45L.