Big news just dropped from Washington that could directly impact homeownership, investment opportunities, and affordability—not just nationwide, but right here on Florida’s Forgotten Coast. Early this morning, on May 22nd of 2025, the U.S. House of Representatives passed the One Big Beautiful Bill Act, a sweeping tax bill with major benefits for real estate. Whether you’re a homeowner, investor, or small business owner in Port St. Joe, Mexico Beach, or anywhere along the coast, here’s what you need to know.
✅ Top 5 Real Estate Wins from the Tax Bill
Thanks to strong advocacy by the National Association of REALTORS® (NAR), this bill includes several big wins for the real estate industry.
1. Small Business Tax Deduction Increased
The Qualified Business Income Deduction—a major tax break for independent contractors and small business owners—has been raised from 20% to 23%.
This change benefits more than 90% of REALTORS® and many other local small businesses.
2. SALT Deduction Cap Quadrupled
The State and Local Tax (SALT) deduction cap is now $40,000 (up from $10,000) for households earning under $500,000.
This helps homeowners in places with higher property or local taxes keep more of their income.
3. Mortgage Interest Deduction Made Permanent
The bill preserves and makes permanent the current Mortgage Interest Deduction (MID)—a key tax benefit for homeowners.
This helps protect housing affordability and market stability, especially for middle-class buyers.
4. Individual Tax Rates Stay Low
The lower individual tax rates created in 2017 have now been made permanent and are indexed for inflation.
This gives homebuyers more financial breathing room and helps more families qualify for a mortgage.
5. 1031 Like-Kind Exchanges Stay Intact
Section 1031 exchanges, used widely in real estate investment, were not changed.
This protects a critical tool for investors looking to grow their portfolios and build long-term wealth.
📍 Why This Matters on Florida’s Forgotten Coast
The real estate market across Florida’s Forgotten Coast, including Port St. Joe, Mexico Beach, Cape San Blas, and surrounding areas, has seen continued growth. With a mix of primary homes, vacation rentals, and investment properties, tax policy matters here in our local real estate market more than ever.
This new legislation helps:
Protect affordability for working families
Encourage real estate investment in rural and growing communities
Preserve tax benefits for second-home buyers and short-term rental owners
Support small businesses that are the backbone of our local economy
With renewed focus on Opportunity Zones, expanded small business deductions, and no new top tax rates, it’s a breath of fresh air for both residents and investors along our coast.
📊 More Provisions That Support Real Estate & Families
In addition to the big five above, the bill includes many other benefits that strengthen the housing market and help families in our communities.
🏠 Affordable Housing Support
The Low-Income Housing Tax Credit was improved to encourage more affordable housing development—important in growing coastal communities like Port St. Joe and Mexico Beach.
👨👩👧 Bigger Child Tax Credit
The child tax credit was increased to $2,500 through 2028, with inflation indexing after that.
More tax relief means more families can save for down payments and housing needs.
👶 New Child Investment Accounts
New tax-advantaged investment accounts can now be set up for children and used for future expenses like a first-time home purchase.
This helps build generational wealth and financial stability in families.
🏡 Estate Tax Certainty
The estate and gift tax exemption has been locked in at $15 million, adjusted for inflation.
This helps families plan for wealth transfer, including real estate passed down to future generations.
📢 What Comes Next?
While the bill has passed the House, it still needs to make its way through the Senate. Changes are possible, but NAR has committed to fighting for homeowners and real estate professionals every step of the way.
🏡 Final Thoughts from The Peevy Team
At The Peevy Team, we believe informed buyers and sellers make the best real estate decisions. This bill could unlock more opportunities for families to own homes, for investors to grow their portfolios, and for communities like ours to thrive.
If you're thinking about buying or selling property in Port St. Joe, Mexico Beach, or anywhere along Florida’s Forgotten Coast, let’s talk about how these tax changes could impact your plans of property ownership.
📞 Contact us today to learn more.
or
🏠 Click here for your Instant Home Valuation