Here’s an update on the One Big Beautiful Bill, fresh from its razor-thin Senate win and heading to the House.
Bottom line for the St. Louis market: The Senate kept nearly all the real-estate perks from the original plan and added a few new benefits that could mean lower taxes for homeowners across the metro, extra take-home pay for small landlords, and more funding for affordable housing projects.
What stayed the same:
- Tax brackets and the standard deduction remain locked in and permanent. No surprise rate hikes in 2026.
- The tax break for small real-estate businesses – like independent agents and landlords – gets even better. You can now deduct nearly a quarter of qualifying income, up from 20 percent.
- Expanded Low-Income Housing Tax Credits promise more affordable apartment projects, like developments planned near the Cortex Innovation District and rehab of older buildings in South City.
- Estate tax rules stay generous, letting each person pass on up to $15 million free of federal tax. That helps families keeping rental properties or historic homes in the family.
New wins in the Senate version:
- State and local tax deductions jump from a $10,000 cap to $40,000. That could help higher income home owners receive some relief for the increase state and local taxes they pay (especially those living in the City of St Louis that are subject to the additional city earnings tax).
- A new exclusion for tips and overtime pay means service workers – from restaurant staff to landscapers – keep more of what they earn, easing the path to homeownership or covering rent.
- Seniors get a higher standard deduction, giving older homeowners on fixed incomes a bit more breathing room.
Next steps in the House: The U.S. House could vote any day. If they approve the Senate version as-is, the bill moves straight to the President – possibly by Independence Day. Any changes would send it back to the Senate, delaying final passage.
Why this matters in St. Louis: Locked-in low rates and bigger deductions keep more money circulating locally, whether you’re prepping a home for sale or advising a small investor. More affordable-housing funding can drive projects like the new Marquette Homes Project (Dutchtown and Gravois Park, St. Louis City) and the Clinton-Peabody Apartments Redevelopment.
