New Tax Bill Advances with CRE-Friendly Provisions
Tax Bill Progresses Through Congress
- House passed version includes key CRE provisions; Senate approval still pending
- Changes still possible, but framework offers early insight for investors
Key Provisions Likely to Benefit Commercial Real Estate
- 1031 exchanges and carried interest rules left untouched
- QBI deduction raised to 23% and made permanent
- Bonus depreciation extended through 2029 with 100% first-year expensing
Investors Remain Optimistic Despite Rising Distress
- Bill may increase deficit by $2.6T to $4.3T over 10 years
- Added Treasury issuance could pressure interest rates upward
- Commercial real estate benefits may help offset rate impact, especially for value-add deals
*As of May 28
Sources: Marcus & Millichap Research Services, Internal Revenue Code §164(b)(6); House-passed American Growth & Opportunity Act, Sec. 11004 (BPC summary 5/22/25)
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