As the year winds down and investors begin shaping their 2026 strategies, revisiting the sweeping provisions of the One Big Beautiful Bill Act offers a timely perspective. Implemented on a staggered timeline stretching from 2025 to 2028 and beyond, depending on the provision, the law remains a focal point for the real estate industry. In a recent Marcus & Millichap webinar, experts underscored the Act’s potential to reshape investment strategies and unlock new tax advantages.
Real estate investors gained plenty to cheer about with the passage of the legislation, which includes a variety of provisions designed to generate tax benefits and address the nation’s urgent affordable housing needs.
Outlining the law’s highlights, Lisa Knee, managing partner at Eisner Advisory Group, reported strong client interest in understanding how to leverage the act for both business opportunities and social impact. She spoke during Marcus & Millichap’s webcast on the 2026 CRE investment outlook, held on Wednesday.
One of the law’s most significant commercial real estate provisions is the restoration of 100% bonus depreciation, allowing owners and investors to claim an upfront tax deduction equal to the full cost of qualifying business property instead of depreciating it over several years. Knee emphasized that this measure was designed to drive investment in local communities. However, she cautioned that some states—such as California and New York—have yet to adopt bonus depreciation, making it essential for investors to evaluate their options as they plan.
Another valuable provision is the preservation of Section 1031 tax-deferred exchanges, which support reinvestment and property improvements across the marketplace. Knee noted this was a "very big deal” for developers and investors looking to revitalize assets.
Knee described the reworking of the Low-Income Housing Tax Credit (LIHTC) as another really positive development. The state awards a 9% credit for this purpose. The new law provides for a permanent additional allocation of 12% for each state. A 4% credit also exists, awarded differently and more easily obtained, subject to having a private activity bond. The existing rule establishing a 50% bond-financing threshold was reduced to 25% in the new law.
Further, the legislation made opportunity zones permanent with new rules narrowing which areas qualify as low-income communities. However, Knee observed that the effectiveness of this provision will depend on future state-level adoption.
During the session, Marcus & Millichap President and CEO Hessam Nadji acknowledged the Real Estate Round Table’s efforts to educate lawmakers about the industry’s needs and priorities.
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