July 7, 2025

This piece is sponsored by Amy Stockberger Real Estate.

By Amy Stockberger

Whether you were for it or against it, the One Big Beautiful Bill has passed. While it affects many sectors, my big question is always: What does it mean for real estate? That’s my passion and my wheelhouse, so let’s break it down.

While the headlines focus on politics, we’re focused on effects. The OBBB isn’t just another tax tweak — it fundamentally reshapes the playing field for how we buy, sell, invest and build. In my world, that means big opportunities and a few big caveats.

Bold boost to affordable housing 

First up: affordable housing. This bill supercharges the Low-Income Housing Tax Credit, increasing allocations by 12 percent and lowering bond-financing thresholds. Translation? Developers now have stronger incentives — and fewer barriers — to build more affordable units. Analysts expect this to add up to 1 million new affordable homes nationwide.

For Sioux Falls, where we see steady population growth and a strong workforce influx, this is a game-changer. More affordable options mean more talent retention, more neighborhood stability and, ultimately, stronger economic growth.

Opportunity Zones just became permanent 

Remember Opportunity Zones? Previously set to sunset in 2026, they’re now here to stay and then some. Investors can defer capital gains longer, and new rural-friendly provisions encourage development in underserved areas. For business owners and investors looking to scale or diversify, this is like hitting the tax strategy jackpot.

We’ve already seen how transformative these zones can be for neglected corridors and downtown districts. Permanent status? Even bolder.

Enhanced tax perks for investors

Real estate owners and investors are smiling right now. Why?

• 100 percent bonus depreciation extended through 2029.
• Section 179 cap raised to $2.5 million.
  

These aren’t minor tweaks. They’re major cash flow accelerators, creating a strong runway for both small and large operators to reinvest, improve properties and grow portfolios faster.

And if you’re considering property upgrades to maximize these benefits, our Home Support Team is ready. From painting to full remodels, our trusted network of partners helps you improve properties efficiently and cost-effectively while leveraging these new tax advantages.

Big win for estate planning

The lifetime estate and gift tax exemption jumps to $15 million per person in 2026. That means more flexibility for families with significant real estate assets, a powerful tool for legacy building, succession planning and wealth preservation.

At Amy Stockberger Real Estate, legacy isn’t just a buzzword — it’s a core principle. This move aligns perfectly with our mission of helping clients build big, juicy legacies that live on well beyond them.

Homeownership just got a bit sweeter

Homeowners get a few wins too:

• The cap on the state and local tax deduction, known as SALT, increases to $40,000. While this is a bigger benefit in higher-tax states, it still can help South Dakotans who own property or have business interests in other states or who pay higher local taxes, giving them more flexibility and potential savings.
• Mortgage interest deduction extends permanently. Homeowners can continue to deduct interest on up to $750,000 of mortgage debt, and the ability to deduct mortgage insurance premiums is restored. This provides additional tax savings and makes owning a home more financially appealing.

But let’s be pragmatic 

While the OBBB delivers incredible opportunities, it doesn’t come without strings. The biggest concern? Potential upward pressure on the federal deficit could drive interest rates higher in the long run. This could raise borrowing costs for builders, buyers and businesses alike.

At Amy Stockberger Real Estate, we’ve always operated with a service-first, lifetime-support mindset. We don’t just help you transact today — we’re thinking 20 years ahead, making sure you’re set up to thrive no matter how the market pivots.

What it means for Sioux Falls

Our city is in a sweet spot: strong growth, business-friendly climate and a deep commitment to community. The OBBB creates avenues for investors to fuel local development, for builders to expand and for families to secure generational homes. It’s a bold moment for bold moves, the kind that transform neighborhoods and redefine what’s possible.

Ready to leverage this opportunity?

If you’ve been thinking about making updates to your investment properties or business assets, now might be the perfect time. The new tax incentives make these improvements even more attractive, and we have an entire Home Support Team of trusted partners to help you get it done efficiently and cost-effectively. In fact, this bill is even pushing us to move forward with updates we’ve been debating for our own Amy Stockberger Real Estate building.

Whether you’re an investor looking to expand, a business owner eyeing new locations or a family thinking about your long-term legacy, we’re here to help you capitalize, not just react.

Let’s talk strategy. Call us at 605-376-6780 or visit amystockberger.com to get started.

By the way, if you want to connect directly with our Home Support Team partners and explore ideas for your own improvements or investments, join us at our upcoming Home & Lifestyle Expo at The District, 4521 W. Empire Place. We’ll have exclusive resources and a drawing for a $30,000 car giveaway, plus so much more. Learn more here: Home & Lifestyle Expo.

Check out my guide to selling a home this summer.

Looking to buy or sell a home? Visit Amy Stockberger Real Estate here.

Click here to view our listings.

Click here if you are considering a relocation to Sioux Falls or the surrounding area or want a free relocation packet full of nuggets of info about the best of Sioux Falls.

Considering a career in real estate or thinking about making a move? See how Amy Stockberger Real Estate guarantees to build big, juicy legacies for everyone in our ecosystem.

Click here to see if your company is a fit for our Home Support Team.

Click here for info on Amy Stockberger Real Estate’s free VIP Club.

Click here for details on Amy Stockberger Real Estate’s Love It or Leave It Guarantee.

Need a conference or training room? Use ours.

Find Amy Stockberger Real Estate on Facebook here.

Stockberger: How innovation is revolutionizing small business — and we’re paying it forward