Taxation on Real Estate Conference - Virtual-2 - Brosseau - After-the-OBBBA-A-tax-legislative-update

2 - Brosseau - After-the-OBBBA-A-tax-legislative-update

Pdf Summary

This Washington Update from Deloitte says the odds of major new tax legislation passing before the 2026 midterms are low, though a lame-duck package could still address items like Taiwan tax relief, SECURE Act 2.0 technical corrections, the expired Work Opportunity Tax Credit, the expiring 48D semiconductor credit, and gambling-loss rules.<br /><br />It reviews the congressional and administrative landscape: Republicans hold narrow House and Senate majorities, while the IRS has had multiple leadership changes since January 2025 and has faced major budget cuts, including reduced annual funding and rescissions of Inflation Reduction Act resources.<br /><br />The presentation explains budget reconciliation, a key process that lets legislation bypass the Senate filibuster with a simple majority, but only within strict procedural limits under the Byrd Rule. Those limits constrain what can be included, especially items with little budget effect or effects outside the budget window.<br /><br />A major focus is the One Big Beautiful Bill Act (OBBBA), now law. The act permanently extends or modifies many business and individual tax provisions, including:<br />- permanent 100% bonus depreciation and domestic R&D expensing<br />- permanent lower interest limitation rules under Section 163(j)<br />- permanent extensions of TCJA individual rates, Section 199A, and Opportunity Zones<br />- changes to SALT, estate tax, AMT, charitable deduction limits, tips/overtime deductions, auto loan interest deductions, and wagering loss rules<br />- energy tax changes, including repeals and phaseouts of several clean-energy credits<br /><br />The deck also highlights provisions that did not make the final bill, such as higher top rates, carried-interest changes, corporate SALT limits, buyback taxes, and extensions of the WOTC and enhanced ACA credits.<br /><br />Finally, it notes that the fiscal outlook remains difficult, with rising debt-service costs projected to consume a growing share of the budget.

Keywords

Washington Update

Deloitte

tax legislation

2026 midterms

lame-duck package

budget reconciliation

Byrd Rule

One Big Beautiful Bill Act

IRS budget cuts

bonus depreciation