NEW YORK, August 13, 2025 – Our latest whitepaper summarizes the impact of President Trump’s long-awaited tax bill on the commercial real estate industry, and provides a walkthrough of how adjustments to deductions, expenses and incentive programs will shape project feasibility and after-tax returns.Key Takeaways
- Section 275, State and Local Tax (SALT) Deduction Cap Adjustments: Raises the SALT cap to $30,000 with phased reductions for high earners, permanently extending the cap and introducing anti-avoidance provisions.
- Section 42(h)(3)(i), LIHTC Reform: Increases state tax credit allocations by 12%, lowers bond-financing thresholds to 25%, and strengthens HUD underwriting—expanding the pipeline of HUD-eligible LIHTC developments.
- Section 199A, Qualified Business Income Deduction (QBI): Permanently extends the 20% deduction for pass- through income, raises phase-in thresholds, and introduces a $400 minimum deduction for active participants, reinforcing the tax efficiency of real estate investment through LLCs and partnerships.
- Section 1400Z-19(c), Qualified Opportunity Zones Renewal (QOZ): Creates new QOZ designations effective 2027–2033, with expanded benefits including basis step-ups and ordinary income deferral, while imposing stricter eligibility and reporting requirements.
- Section 179(b), Expensing Expansion: Doubles the IRC §179 deduction cap to $2.5M with a $4M phase-out threshold, allowing for accelerated cost recovery on qualifying properties.
Read the full whitepaper here: [Download]
