House Passes Tax Reform Bill

May 22, 2025

The U.S. House of Representatives on May 22 passed President Trump’s One Big Beautiful Bill Act, including important tax provisions ALTA advocated for that will have positive implications for title and settlement companies and agents, and the broader real estate and mortgage industries.

Passed by a vote of 215-214, the bill retains the current tax rates while including a range of provisions including an increase in the qualified business income (QBI) deduction, preservation of Section 1031 like-kind exchanges and quadrupling the deduction for state and local taxes (SALT). The bill now heads to the Senate, which members have indicated there will be changes.

ALTA commended the House for passing legislation that recognizes the needs of American small businesses, including the thousands of title and settlement companies ALTA represents. 

“The expanded deduction under Section 199A is a welcome step that supports the long-term health of our small business members and the communities they serve,” said Diane Tomb, ALTA’s chief executive officer. “ALTA is especially pleased to see the preservation of Section 1031 like-kind exchanges, which play a vital role in fueling real estate investment, promoting property improvements and driving local economic growth.”

The Section 199A deduction, also known as the QBI deduction, allows eligible self-employed individuals and small business owners to deduct up to 20% of their qualified business income. This deduction, established by the Tax Cuts and Jobs Act (TCJA) of 2017, is applicable for tax years 2018 through 2025. It provides a tax break for owners of pass-through businesses.

  • The One Big Beautiful Bill expands this deduction to 23% and makes it permanent.

Enacted via TCJA, there’s currently a $10,000 limit on the deduction SALT. 

  • The bill would raise the SALT cap to $40,000 for households earning under $500,000. The SALT limit and income phaseout would increase annually by 1% from 2026 through 2033.

Tomb said provisions supporting homeownership, including those related to mortgage interest and capital gains exclusions, help provide certainty for buyers, sellers and lenders alike—strengthening the entire housing ecosystem.

“We urge the Senate to build on this momentum and protect the real estate and housing incentives that help Americans build wealth, promote generational stability and drive our economy forward,” Tomb added.


Contact ALTA at 202-296-3671 or [email protected].