Why the Big Beautiful Bill Is a Good Thing for Real Estate in Boise

delaneyknight
Jul 8
3 min read

Boise’s real estate market has experienced rapid growth and mounting affordability challenges in recent years. The passage of the One Big Beautiful Bill (OBBB) brings significant federal policy changes with direct and positive implications for Boise’s homeowners, investors, and renters.

Key Benefits for Boise Real Estate

1. Expansion of Affordable Housing

Boost to Low-Income Housing Tax Credit (LIHTC): The bill permanently increases Idaho’s allocation of LIHTC funds and lowers the bond-financing threshold. These changes are projected to add thousands of affordable housing units nationwide, with a notable impact in growing cities like Boise where demand for affordable rentals is high 1 2 3.
Rural and Tribal Area Incentives: A new 30% basis boost for LIHTC properties in rural and tribal areas makes it easier to finance projects in and around Boise, expanding access to affordable housing for local residents 1.

2. Incentives for Real Estate Investment

100% Bonus Depreciation: The bill extends 100% bonus depreciation for qualified property through 2029. This allows Boise investors to immediately deduct the full cost of certain property improvements, encouraging further investment and development in the city 4.
Enhanced Qualified Business Income (QBI) Deduction: The QBI deduction for pass-through entities rises to 23%, lowering effective tax rates for many real estate businesses and making Boise’s property market even more attractive to investors 4.

3. Homeownership Benefits

Higher State and Local Tax (SALT) Deduction: The cap on SALT deductions increases from $10,000 to $40,000, benefiting Boise homeowners who pay higher property taxes or have significant state/local tax liabilities 3 5 6.
Mortgage Interest Deduction Restored: Homeowners can now deduct interest on the first $750,000 of mortgage debt, making homeownership more affordable for Boise families and first-time buyers 3.

4. Opportunity Zones and Community Development

Permanent Opportunity Zone (OZ) Policy: The bill makes the OZ program permanent and targets more deeply underserved areas, channeling investment into neighborhoods that need revitalization. Boise stands to benefit from increased capital for housing and mixed-use developments in designated OZs 1 2 3.
Reporting and Rural Focus: New reporting requirements and a mandate that a third of new OZs be in rural areas ensure that Boise’s outlying communities are not left behind 2.

5. Estate Planning and Wealth Transfer

Higher Estate and Gift Tax Exemption: The exemption rises to $15 million per person, helping Boise’s high-net-worth property owners transfer real estate holdings to heirs with reduced tax burdens 7 4.

What This Means for Boise

More Housing Supply: The bill’s provisions are expected to increase the supply of both market-rate and affordable housing, helping to moderate price growth and ease pressure on renters.
Stronger Investment Climate: Tax incentives and regulatory reforms make Boise an even more appealing market for local and out-of-state investors.
Support for Homeowners: Expanded deductions and restored mortgage interest benefits help Boise families manage the costs of homeownership.
Community Revitalization: Targeted investments in opportunity zones and rural areas will spur neighborhood improvements and economic development.

The Big Beautiful Bill brings a suite of reforms that address Boise’s most pressing real estate challenges. By expanding affordable housing, incentivizing investment, and supporting homeowners, the bill positions Boise for continued growth and greater housing opportunity for all residents 1 2 4 3.

This article is based on recent legislative summaries and expert analyses of the One Big Beautiful Bill’s impact on real estate and housing policy.