New Tax Law, New Rules: What CRE Owners Need to Rethink Before 2026 The One Big Beautiful Bill Act is now law. Signed July 4, 2025. It’s the biggest federal tax change since the 2017 Tax Cuts and Jobs Act, loaded with implications for commercial real estate owners. Tax Benefits That Could Unlock Capital 100% Bonus Depreciation Restored Applies to qualified production property (e.g., manufacturing, refining). CRE tied to industrial and logistics facilities could see major tax savings. Opportunity Zones Extended (2027–2033) Program continues with updates: narrower eligibility, rural requirements, and enhanced benefits for rural-focused funds. More time, more incentive—especially for long-term hold strategies. Low-Income Housing Tax Credit Expanded For 4% projects, the bond financing test drops from 50% to 25% (2026–2030). Opens the door to more affordable housing deals that previously couldn’t pencil. SALT Deduction Cap Increased to $40K Applies through 2029 for those earning under $500K. Offers relief to CRE owners in high-tax states who operate through pass-through entities. Section 199A Deduction Increased to 23% Pass-through income (common in CRE LLC structures) becomes slightly more tax-efficient. Starts 2025. Tradeoffs and Risks to Watch Section 179D Retrofit Incentives Ending Energy-efficiency deduction sunsets for projects starting 12+ months after enactment. Owners with green retrofit plans should move fast. Clean Energy Tax Credits Phasing Out Solar, wind, and other energy project incentives begin winding down. Could raise costs for properties reliant on renewable energy upgrades or ESG initiatives. Some Benefits Are Temporary Key provisions (bonus depreciation, SALT relief, LIHTC bond test) expire by 2030. Planning horizons matter. What CRE Owners Should Do Now Reassess development and retrofit timing Explore OZ and LIHTC project viability under new terms Reevaluate tax strategy for pass-throughs and REIT structures Talk to your CPA—seriously The tax tail just got longer—and it’s wagging the deal. Bonus depreciation, OZ extensions, and LIHTC shifts will change how capital flows. Get your structure, strategy, and timing right—or watch someone else close your deal. https://lnkd.in/eTaBpRPA