National trade associations related to housing are applauding lawmakers following the House of Representatives’ final passage of H.R. 1, the Republican-led tax and reconciliation package, by a 218-214 vote Thursday. The legislation now heads to the President Donald Trump’s desk to be signed into law during a July 4 ceremony.

The implications of the bill for the housing and real estate world are major. David M. Dworkin, president and CEO of the National Housing Conference (NHC), said in a statement that the housing provisions included in the bill are “the most consequential and positive housing legislation in decades.”

Many of those provisions were applauded in press releases from groups like the American Land Title Association (ALTA), the National Association of Realtors (NAR) and the Mortgage Bankers Association (MBA).

Dworkin stated key provisions include the expansion of the Low-Income Housing Tax Credit (LIHTC), permanent preservation of the existing mortgage interest deduction, reinstatement of the mortgage insurance premium deduction, an expanded and permanent Opportunity Zones incentive and permanent extension of the New Markets Tax Credit.

ALTA applauded the increased cap on the state and local tax (SALT) deduction to provide relief to homeowners in high-cost areas. It also said the preservation of Section 1031 like-kind exchanges — swaps of one real estate investment property for another, allowing deferment of capital gains taxes — “foster investment and development in both residential and commercial markets.” It pointed to the 20% qualified business income deduction under Section 199A of the tax code, which provides crucial relief for many small and midsize title and settlement companies organized as pass-through entities.

NAR pointed to its five top legislative priorities, stating they were all met in the final package. One of these was a temporary five-year quadrupling of the SALT deduction cap, beginning in 2025.

MBA President and CEO Bob Broeksmit stated in a press release: “MBA is pleased that the final tax package preserves or strengthens — and makes permanent — numerous pro-housing and pro-economic growth tax provisions.”

Identifying these as points identified by MBA’s board-level Tax Task Force, Broeksmit said he believes “these provisions will benefit homeowners and renters, increase housing production and improve the financial outcomes of our single-family and commercial/multifamily members’ businesses.”

The provision regarding Opportunity Zones was a major area of focus for NHC.

“Strengthening and making Opportunity Zones permanent, especially with its increased emphasis on rural communities, will help spur long-term investment in distressed communities by incentivizing capital to flow into areas that need it most,” its statement read. “These zones have already begun transforming neighborhoods by supporting local development, job creation and housing expansion.”

Amid the trade group applause, there were elements of caution. NHC stated that while it “strongly supports the bill’s significant housing investments, we recognize that other provisions will adversely affect many families across the country. Housing is a continuum, and there is much more work to be done.”

The group says it looks forward to working with the administration and congressional leaders to craft bipartisan housing legislation that includes the Neighborhood Homes Investment Act, legislation that would relieve low- and moderate-income first-time homebuyers of the burden of paying tax on Employer Assisted Housing grants and loan forgiveness, the Affordable Housing Bond Enhancement Act, and other bipartisan proposals.

Marty Green, a principal with Polunsky Beitel Green LLP, a law firm that provides legal support to residential mortgage lenders, also pointed out how the bill’s key provisions impact residential real estate.

“First, in addition to preserving the tax cuts from the tax bill from his first administration, the new bill increases the deductibility of state and local taxes from $10,000 to $40,000, which will be welcome news to owners or purchasers of property in areas where real estate taxes, even on run-of-the-mill properties, often exceed $10,000 a year,” Green wrote in a statement.

“However, taxpayers with adjusted gross income of $600,000 or more will not benefit from the SALT tax changes,” Green added, “as the benefit phases out 30% for each dollar of adjusted gross income over $500,000. The other side of the equation, though, is whether interest rates increase due to the perception that the bill will cause federal deficits to expand unacceptably.”

The passage of the bill came down to the wire to meet Trump’s July 4 deadline. The Senate’s passing of the legislation Tuesday was razor-thin, with Vice President JD Vance having to cast a tiebreaking vote to break the 50-50 deadlock.