📈 Huge news for Greater Boston’s multifamily real estate market! The “One Big Beautiful Bill Act” just passed, bringing significant tax changes that will reshape development and investment.
Here’s how it impacts our local market:
Permanent Tax Relief: Ordinary income tax rates and the 20% deduction for qualified business income (including REIT dividends) are now permanent, offering financial stability for multifamily owners.
Boosted Investment Incentives: Expect more capital flowing into development with permanent 100% bonus depreciation and reduced limitations on business interest deductibility. This could accelerate construction in Boston.
Affordable Housing Focus: A 12% permanent enhancement to Low-Income Housing Tax Credits (LIHTC) and a reduced bond financing threshold (from 50% to 25%) are major wins, paving the way for more affordable housing projects in our high-cost market. 🏘️
Renewed Opportunity Zones: Opportunity Zones are permanently renewed, providing continued tax incentives for investment in designated low-income areas across Greater Boston, fostering revitalization.
No New Harmful Revenue Raisers: The Act largely avoids new taxes that could have negatively impacted capital for multifamily supply, maintaining crucial deductions.
While some energy tax incentives are eliminated, the overall package creates a more favorable and predictable environment for multifamily real estate in our region. This could be a game-changer for addressing Boston’s housing needs!
See more from Matthew Berger at NMHC → https://www.nmhc.org/news/nmhc-news/2025/congress-passes-one-big-beautiful-bill-act/?utm_medium=email
#BostonRealEstate #MultifamilyHousing #TaxReform #AffordableHousing #OpportunityZones
