There’s a massive piece of legislation working its way through Congress right now… fittingly titled The One, Big, Beautiful Bill… and it includes several key provisions that could deliver real value to homeowners, investors, and real estate professionals alike.
Let’s start with taxes… the bill locks in the lower income tax brackets from the Tax Cuts and Jobs Act, preventing a tax hike in 2026. It also makes the higher standard deduction permanent… meaning more take-home pay for many households. In 2026, for example, a married couple filing jointly would get a $32,600 deduction under this proposal… double what it would be otherwise.
Real estate pros will appreciate that the Qualified Business Income (QBI) deduction… a key tax benefit for agents, brokers, and investors who operate as sole proprietors or through pass-through entities… not only stays in place but gets a boost… increasing from 20% to 23% while smoothing out phase-out thresholds that previously hit some filers with punishing marginal rates.
One big win for affordable housing developers is the restoration and expansion of the Low-Income Housing Tax Credit (LIHTC). This bill brings the 9% LIHTC back to its higher 2021 level with a 12.5% increase in credit allocations from 2026 through 2029. It also lowers the bond-financing threshold for the 4% LIHTC down to 25% for projects before 2030… plus it designates Indian and rural areas as Difficult Development Areas (DDAs), which can trigger a 30% basis boost.
For homeowners and heirs, the estate tax exemption would double to $15 million per person… $30 million for couples… starting in 2026. And yes, for investors using 1031 exchanges to defer capital gains, the bill doesn’t touch this powerful tool… no new restrictions or caps. That’s good news in and of itself, especially after it’s been under threat in past tax proposals.
The bill also enhances Opportunity Zones… a provision we’ve seen benefit redevelopment in underinvested areas. A new round of OZs is proposed, this time requiring 33% to be located in rural areas and providing even stronger incentives for those funds… up to a 30% basis step-up for rural OZ investments held 5 years.
So what’s next? This bill is currently in the committee stage. If passed out of committee, it moves to the full House for debate and votes… then heads to the Senate… and ultimately, the President’s desk. While anything can change along the way, this first draft shows lawmakers are thinking about housing, development, and real estate professionals in a meaningful way.
You can read the full draft of the bill below:
Complete Bill Text: