What the CRE Industry Should Know About the One Big Beautiful Bill Act 

President Trump signed the One Big Beautiful Bill Act (OBBBA) into law, bringing a range of tax breaks and opportunities that can benefit the CRE industry. 

Benefits include lowering the cost of making building improvements, freeing up cash for operations, and protecting key tax tools that support long-term investment. 

What You Need to Know 

Key benefits of this bill include:

• Bigger Tax Breaks for Building Upgrades: Properties will now be able to deduct the full cost of upgrades—like HVAC systems, lighting, or renovations—all at once instead of over many years. This means making improvements now costs less after taxes. 
• Higher Deduction Limits: Smaller building owners and service providers can now deduct up to $2.5 million right away for things like tools, vehicles, or equipment. 
• Permanent Tax Break for Business Owners: If your company passes income to its owners, you can now count on a 20% tax break every year—it’s no longer temporary. 
• Easier Loan Interest Deductions: It will now be simpler to deduct interest on business loans, helping people get bigger tax breaks when financing upgrades or new purchases. 
• 1031 Exchanges Stay the Same: The 1031 exchange, which lets owners swap properties without paying taxes right away, is still safe. The new law keeps these rules and adds support for investing in under-served areas. 
• More Flexibility for REITs: REITs can now include more types of investments, helping them stay competitive and flexible. 

How It Impacts You 

With bigger tax breaks and easier financing, building owners are more likely to upgrade systems, start new projects, and invest in properties.

That means more retrofits, renovations, and business across the board.

For commercial real estate professionals—like property managers, engineers, and service providers —this could mean more job opportunities, more contracts, and more business activity in the near future.

Stay Connected

The One Big Beautiful Bill Act can help the CRE industry save more on taxes while keeping key tax tools. Helping support more building upgrades and business activity. 

Stay connected to BOMA on the Frontline for updates on how legislation impacts you.