In a landmark legislative win for congressional Republicans and the Trump administration, the “One Big Beautiful Bill” has officially passed both chambers of Congress and is now law. This sweeping reconciliation package cements key provisions from the 2017 Tax Cuts and Jobs Act (TCJA), expands select deductions, and reshapes the tax and entitlement landscape for years to come.
From individual taxpayers to commercial real estate investors, the impacts are broad, and in many cases, significant. Here’s what you need to know now that the bill is final.
What Is the Big Beautiful Bill?
The OBBBA is a massive budget reconciliation package that:
- Permanently extends many provisions of the 2017 Tax Cuts and Jobs Act (TCJA)
- Raises the debt ceiling by approximately $4–5 trillion
- Expands select tax breaks for families and businesses
- Rolls back or eliminates several clean energy incentives
- Introduces tighter requirements for Medicaid and SNAP recipients
The bill touches everything from the estate tax and standard deduction to overtime pay, Opportunity Zones, and bonus depreciation. It’s one of the most consequential fiscal bills in recent memory.
What’s in the Bill?
The newly passed legislation includes:
- Permanent extension of most individual and business tax provisions from the 2017 TCJA
- Restoration of 100% bonus depreciation for qualifying property acquired and placed in service after January 19, 2025
- Increased Qualified Business Income deduction to 23%
- Higher estate and gift tax exemption levels ($15M individual / $30M joint)
- Temporary cap increase for the State and Local Tax (SALT) deduction
- Significant rollback of energy-related tax incentives
- Tightened eligibility and work requirements for entitlement programs like Medicaid and SNAP
Impact on Commercial Real Estate
For commercial real estate, this bill is nothing short of transformational. Most notably, it restores 100% bonus depreciation for qualifying assets acquired and placed in service on or after January 19, 2025. This change reverses the previous phase-down schedule and re-establishes a powerful incentive for capital investment.
This move is expected to:
- Accelerate deal activity in CRE acquisitions and renovations
- Encourage tenant improvement and infrastructure upgrades
- Improve financing outcomes by boosting after-tax ROI
- Provide clarity for long-term planning and pro forma modeling
Additionally, Opportunity Zone incentives are now permanent, and the low-income housing tax credit was expanded to further encourage development in underserved areas.
Cost Segregation and Bonus Depreciation: A Powerful Duo
The return of full bonus depreciation makes cost segregation studies significantly more valuable. When a cost segregation study identifies 5, 7, or 15-year property components within a building, those components can now be fully expensed in the first year under the restored 100% bonus depreciation rules.
This is a substantial tax-saving opportunity for:
- Property owners with new construction or acquisitions in 2025 and beyond
- Renovated commercial buildings or tenant improvements
- Investors looking to reduce current-year federal income tax obligations
At CSSI, we’ve seen firsthand how powerful this strategy can be—especially when combined with other deductions like Section 179D and the R&D credit.
What About Section 179D and the R&D Tax Credit?
Section 179D is set to be repealed for construction beginning after June 30, 2026. On top of this, broader clean energy credit repeals may signal tightening scrutiny on sustainable building incentives in future legislation. However, CSSI can still help qualifying energy-efficient commercial buildings benefit from the existing deduction, which remains up to $5.81 per square foot.
The R&D tax credit also remains available and enacts a temporary reversal of Section 174 Capitalization Rules. This allows for a full deductibility of R&D expenses, but only domestically. Under the 2017 Tax Cuts and Jobs Act, businesses were required to capitalize and amortize R&D expenses over 5 years (15 for foreign research) starting in tax year 2022, rather than deduct them immediately.
Summary of Key Tax Incentive Outcomes
| Incentive | Final Outcome |
| Bonus Depreciation | Restored to 100% for assets acquired and placed in service after Jan. 19, 2025 |
| Cost Segregation | Strengthened by permanent bonus depreciation |
| QBI Deduction | Increased to 20%, made permanent |
| Section 179D | Still in effect, but is set to be repealed for construction started after June 2026. |
| R&D Credit | Amortization is getting repealed for 2025 and back to 100% expensing. |
| Opportunity Zones | Made permanent |
| SALT Deduction | Temporarily increased cap ($40K for joint filers under $500K income) |
| Estate & Gift Tax | Exemption raised to $15M / $30M (indexed) |
Final Thoughts
With the Big Beautiful Bill now law, tax professionals, investors, and business owners have a clear and stable framework for long-term planning. For those in commercial real estate, this is the green light to move forward with acquisitions, improvements, and cost segregation strategies that maximize upfront deductions and drive down tax liability.
At CSSI, we specialize in helping clients make the most of these changes through engineered cost segregation studies, Section 179D energy deductions, and R&D Tax Credits. If you’re ready to capitalize on the most favorable tax environment in years, let’s talk.
Get in touch with our team today to start your strategic tax planning.
