SALT Cap Up, Tax Breaks Back—The ‘Big Beautiful Bill’ Is a Game-Changer for All Commercial Real Estate Owners
Hey, Retail Real Estate Rockstars!
The brand-new “Big Beautiful Bill” (H.R. 1) just rewired the tax rules. Here’s five headline changes—and exactly when they start or end—that can boost (or bruise) your next retail property move.
Key Tax Breaks & Deadlines
- 100 Percent Bonus Depreciation – Applies to assets bought after January 19, 2025 and is permanent (no sunset).¹
- Opportunity Zones 2025 – Program is now permanent; new zones certified July 2025 (active January 1, 2027) and each zone lasts 10 years.²
- Low Income Housing Tax Credit Expansion – Extra 12 % allocation begins January 1 , 2026 and stays in force permanently.³
- SALT Deduction Cap Increase 2025 – Cap jumps to $40k for tax years 2025–2029; snaps back to $10k in 2030.⁴
- Energy Tax Credit Repeal for Commercial Buildings (§ 179D) – Deduction stays alive until projects starting after June 30, 2026; then it ends.⁵
What You Need to Know
- 100 Percent Bonus Depreciation is forecast to add $280 B in first-year deductions nationwide over the next decade.¹
- LIHTC boost could create 80,000 extra affordable rentals between 2026-2035.³
- SALT cap hike will reduce federal taxes for about 13 M households, many of them pass-through property owners.⁴
- Only 24 months remain to lock in § 179D on new efficiency projects before repeal.⁵
Fast Data Points
- The LIHTC “bond test” drops to 25 % of project cost, letting more deals qualify for 4 % credits.³
- Raising the SALT cap is projected to cost $350 B over ten years.⁴
- OZ investors can still hit a 15 % basis boost after a 10-year hold under the permanent rules.²
Why This Matters to Retail Owners
- Instant Expense Power – Spend $500k on tenant improvements in 2025 and deduct all $500k that same year.¹
- Long-Game Site Selection – A store inside a new OZ can defer gains and boost basis—perfect for 10 to 15 year strategies.²
- Affordable-Mixed Play – Add LIHTC apartments above ground-floor retail and tap into the larger 2026 credit pool.³
- Personal Tax Relief – With the SALT cap set at $40k, California LLC owners can fully deduct state taxes for five years.⁴
- Green Upgrade Countdown – Pull permits for lighting or HVAC upgrades before July 2026 to keep the § 179D deduction.⁵
Want these rules working for your rent roll, refinance, or next acquisition? Call or DM me for more information—let’s get a head start on your 2025/2026 real estate strategy before the competition wakes up.
Which of these changes will shift your next leasing or investment move first—instant write-offs, permanent OZs, bigger housing credits, SALT relief, or locking in green deductions?
Keep an eye out in the coming weeks—we’ll be diving deeper into each of these game-changing updates.
#RetailRealEstate #CREInvesting #TaxStrategy #OpportunityZones #BonusDepreciation
Footnotes:
1. H.R. 1 (2025), § 70301; KBKG, “OBBB Tax Bill Makes 100% Bonus Depreciation Permanent – What You Need to Know” (July 9 2025).
2. H.R. 1 (2025), § 70421; Seyfarth Shaw LLP, “7 Key Changes to the Qualified Opportunity Zone Incentive Under the One Big Beautiful Bill Act” (July 7 2025).
3. H.R. 1 (2025), § 70422; Nelson Mullins, “One Big Beautiful Bill Act Signed into Law – What Made It Into the Final Bill?” (July 7 2025).
4. H.R. 1 (2025), § 70120; Bipartisan Policy Center, “How Would the 2025 House Tax Bill Change the SALT Deduction?” (June 9 2025).
5. H.R. 1 (2025), § 70507; Frost Brown Todd, “One Big Beautiful Bill Act Cuts the Power: Phase-Outs, Foreign-Entity Restrictions, and Domestic Content in Clean-Energy Credits” (July 4 2025).
6. Bipartisan Policy Center, “How Would the 2025 House Tax Bill Change the SALT Deduction?,”
supra note 4.
7. Nelson Mullins, “One Big Beautiful Bill Act Signed into Law – What Made It Into the Final Bill?,”
supra note 3.
Disclaimer: I am not a tax accountant, CPA, or tax attorney. Always confirm these details with your own qualified professional before making tax or investment decisions.
© 2025 Marc Perlof Group. All rights reserved.
