When the One Big Beautiful Bill Act (OBBA) passed on July 4, 2025 (U.S. Congress), it barely made a blip in the mainstream media. But inside the fine print? A series of quiet moves that subtly rebalanced the playing field and real estate markets like Las Vegas are now primed to benefit.
This wasn’t just a tax update. It was a structural realignment of how money, deductions, and tax strategy flow.
What OBBA Actually Did (and What It Means for You)
SALT Deduction Cap: A Strategic Window
Under OBBA, the state and local tax (SALT) deduction cap rises to $40,000 per return (or $20,000 for married filing separately) for tax years 2025 through 2029 (Bipartisan Policy Center). The cap begins phasing out for those earning over $500,000 in modified adjusted gross income (MAGI) and reverts to the $10,000 cap in 2030.
MAGI, or Modified Adjusted Gross Income, is your AGI (Adjusted Gross Income) with certain deductions added back in, like student loan interest, foreign income exclusions, or IRA contributions. It’s the number the IRS uses to determine eligibility for deductions and credits.
Why this matters: In states like California or New York, high-income earners regularly exceed the $500K MAGI threshold and lose most SALT deductibility. In Nevada, with no state income tax, many buyers can stay under the cap or eliminate the burden entirely. That makes Vegas a destination not just for affordability but for tax leverage.
Bonus Depreciation: Real (But Misunderstood) Returns
OBBA restores 100% bonus depreciation for qualified personal property placed in service after January 19, 2025 (Stinson LLP). This includes tangible assets with a recovery period of 20 years or less, like appliances, fixtures, and some landscaping, but does not apply to full residential structures like fourplexes.
While you can’t depreciate the entire cost of a building in year one, investors can front-load deductions using cost segregation studies, which identify eligible components. A $950,000 rental property might yield $50K–$100K+ in first-year bonus depreciation, depending on asset mix and classification (Brady Ware).
For multifamily investors or short-term rental buyers, this can dramatically accelerate returns when done correctly but it requires precision, not assumptions.
Clean Energy Credits Are Expiring
Several clean energy and efficiency credits introduced under the Inflation Reduction Act are now scheduled to expire after December 31, 2025. This includes:
- The Residential Clean Energy Credit (Section 25D)
- Credits for solar, geothermal, battery storage, and high-efficiency HVAC systems
These were previously available for upgrades made through 2032, but OBBA terminates eligibility for systems not placed in service by the end of 2025 (SEIA).
Why this matters: Homeowners thinking about “going green” for tax breaks need to act fast. Sellers with recently upgraded homes should consider listing before the incentive edge disappears.
Why Vegas Is Quietly Winning
With zero state income tax and relatively low property taxes, Nevada already looked good on paper. But OBBA made the contrast starker:
- High-income earners fleeing high-SALT states now have new reason to land in Vegas
- Investors can fast-track depreciation where cash-flow margins already outperform
- Sellers with green improvements hold temporary tax value others soon won’t
This doesn’t mean Vegas home prices will skyrocket tomorrow. It means smart capital is repositioning here now, and that momentum builds over time.
What to Do Now
- Run your MAGI numbers and assess SALT eligibility
- Book a cost segregation study before placing new investments into service
- If you’re selling a green-upgraded home, consider listing before Q4 2025
- Grab the Vegas Buyer’s OBBA Playbook to see how tax changes shift your local strategy
In this market, the early movers don’t just get better properties—they get smarter returns.
Disclaimer: This article is for informational purposes only and does not constitute tax or legal advice. Please consult a licensed tax professional for personalized guidance.
