What the Big Beautiful Bill Act Means For Pennsylvania

The One Big Beautiful Bill Act is a high controversial and highly debated topic for the current administration — it’s a bill that could reshape how housing works in high-tax states like Pennsylvania. Whether you own a home, are thinking about selling, or are planning to buy, this legislation could change how you think about property taxes, home upgrades, and what adds value to a property.

High earners typically making over $250,000 a year especially if  you're in markets like Philadelphia, the Main Line, Bucks, Montgomery, or Chester counties, where property taxes are no small line item on your budget. Let’s break this down properly: what’s changing, why it matters, and how to get ahead.

The SALT Deduction Cap Expansion — Finally Some Relief for PA Homeowners?

✅ What’s Proposed

Since 2017, homeowners have been limited to deducting $10,000 per year in combined state and local property and income taxes on their federal returns. That’s hit Pennsylvania hard, because in many of our communities, property taxes alone exceed that limit — before you even factor in local income tax.

The bill would raise that cap to $40,000 for joint filers and $20,000 for single filers, with a phase-out beginning at incomes over $500,000.

 Real Impact in PA

• Buyers who stepped away from high-tax areas might come back — places like Radnor, Chestnut Hill, and Newtown, where property taxes moved some high earners out of the area, could see renewed interest.

• Sellers can stop fielding tax objections from buyers — if a buyer can now fully deduct their local tax bill, a property with a $25k yearly tax obligation starts looking a lot more reasonable.

• It rebalances the map — this change could even up demand between low-tax and high-tax neighborhoods in PA. This will mostly benifit high income earners on it's face.

💡 Example

A couple buying a $1.2M home in Lower Merion with $28,000 in combined local taxes could previously deduct only $10k. Now, they could deduct the full amount — putting thousands of dollars back in their pocket each year.

The Upside

✅ Helps affluent buyers justify moving into premium areas.

✅ Could push home values higher in tax-heavy neighborhoods that have lagged.

✅ Eases pressure on sellers who’ve struggled against the “your taxes are too high” objection.

The Downside

⚠ Buyers in lower-tax areas won’t see much benefit.

⚠ Could add heat to already-competitive parts of the market, driving prices up.

⚠ Temporary? The bill doesn’t fix structural tax inequality — it just patches over it.

Energy-Efficiency Credit Rollbacks — The Hidden Cost 

✅ What’s Proposed

Right now, federal credits cover up to 30% of certain energy upgrades (solar, geothermal, heat pumps, efficient windows, insulation, etc.) thanks to the Inflation Reduction Act. The bill would end or reduce these credits sooner than planned.

Real Impact in PA

• Homeowners who waited to install solar or upgrade systems will lose out — those tax credits were helping offset major out-of-pocket costs.

• Buyers will look harder at homes that already have these features — with credits gone, retrofitting gets pricey fast.

• Homes without upgrades may fall further behind on buyer wish lists — energy efficiency isn’t just nice to have; it’s becoming an expectation at the higher end of the market.

💡 Example

A $40,000 solar system today gets a $12,000 federal credit. If that credit disappears, that same system costs $12k more out-of-pocket.

The Upside

✅ If you’ve already upgraded, your home could command a premium — buyers will pay for efficiency when they know it’ll cost them more to do it themselves.

✅ If you’re selling soon, you may beat the rush of price increases on retrofits.

The Downside

⚠ Makes upgrades harder to afford — especially for owners of older or larger homes.

⚠ Slows green adoption in a state where energy costs are already high.

⚠ Buyers may hesitate on fixer-uppers knowing the upgrade incentives are gone.

What This Means for the PA Real Estate Market

➡ High-tax suburbs could heat up — expect renewed buyer interest where tax deductibility becomes a plus rather than a pain point.

➡ Energy-efficient homes will stand out even more — buyers will pay up for what’s already done because adding those features themselves just got more expensive.

➡ Strategic timing will matter — sellers and owners need to think now about how to position properties or complete upgrades before rules change, we can help.

What Smart Buyers, Sellers, and Owners Should Be Doing

✅ Sellers:

If your property taxes were scaring off buyers before — get ready to reposition your home. Work with your agent to make sure buyers understand the potential tax benefit.

✅ Buyers:

Run both scenarios — with the SALT cap change and without — so you’re ready to move decisively. Don’t overlook what losing energy credits could mean for your renovation budget.

✅ Owners planning upgrades:

Move fast if you want those credits. Get your projects locked in now while the tax savings are still available.

✅ Investors and builders:

Rethink ROI projections on flips and new builds that relied on green incentives. And think hard about demand shifts in high-tax markets.

The One Big Beautiful Bill Act could change where people buy, what they buy, and what adds value. In PA, where property taxes are no joke and energy costs matter, these shifts could reshape our real estate market in ways that are worth paying attention to right now.