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What One Big Beautiful Bill
Means for Homeowners
Mostly tax deductions & exemptions.
There was a lot of talk about how Boastful & Boorish or Big & Beautiful the bill was going to be, but like it or not House Resolution 1 passed. So let’s talk about what’s in the “Big, Beautiful Bill” for homeowners.
I thought BBB stood for something else.
It does, but it might work as a good acronym for this too. Every two years we have an election, and the members of the House of Representatives and Senators are set and are called a Congress.
As of July 4th, 2025 we have had 119 such Congresses and the first resolution the House put to a vote was HR1 which included a myriad of different line items that change many of the policies and laws of the Federal Government of the United States.
Yeah, yeah, but how does it help homeowners?
Sorry, we just thought we’d give quick recap on how Congress works (or doesn’t as some might say).
Anyways looking through HR1 we found a few things that might be relevant to the customers of TerraFirma. They mostly include tax credits and exemptions. Let’s start with home equity.
You’re talking about Home Equity & Loans
You bet we are. You’ve either paid off some of your mortgage or your home has gone up in value since you bought it. Either way there’s value in your home you can tap into and that’s called home-equity.
HELoans
You can take out a Home Equity Loan to pull cash out of your house. If you are spending this money on home improvements for your primary or secondary home the interest is exemptible / tax deductible.
The interest on home loans up to $375,000 ($750,000 if married) can be deducted from the amount of money you earned in a year, reducing the taxes you owe. If your loans exceed the numbers above, then you just use the interest on the maximum amount ($375k or $750k if married). This was going to expire in 2025, HR1 made it permanent.
HELoC
Similar to a HELoan, a Home Equity Line of Credit works like a credit card that is secured by your home. It’s not as easy as having a card, but you write checks that work like swiping a card.
The interest from HELOCs work like the HELoans with the same limitations (home improvement, $375k/750k limits, exemptible, 2025).
PMI
Since the housing crash of 2008, any mortgage without 20% down requires Private Mortgage Insurance (PMI).
This is insurance you buy to protect the mortgage company in case you default on your loan. For Tax Year 2026 you can reduce your income by your PMI, reducing your taxes owed.
So that’s helpful for homeowners that need to make improvements on their home like fixing their foundation, encapsulating their crawlspace, waterproofing their basement, repair your concrete or even giving their home an earthquake retrofit. Paying less in taxes as a result of improving your home is nice, but there’s more.
If only we could deduct taxes…
Funny, but you’re actually right!
SALT – State And Local taxes can be deducted from our income. In 2025 you can deduct up to $40,000 from your income, but you have to choose State or Local taxes, not both.
Estate Tax – You can’t deduct this, but people can pass on more money when they pass away in 2026. The exempt limit was increased from $15 million to $30m.
There’s lots of opportunities for homeowners to pay less taxes.
Yeah, we heard about the solar stuff.
Oops, that’s one that didn’t make the cut. You need to take advantage of any Federal Government programs before 2026.
Solar – 2025 is the last year you can get a tax credit for 30% of what you spend on a solar install.
Green – 2025 is the last year you can get a credit for improving the energy efficiency of your home. There’s a lot of things that qualify: windows, insulation, HVAC, doors, wind turbines, fuel cells, etc.
All of these deductions can save you money if they exceed the standard deduction.
Can you do my taxes?
No. TerraFirma is not an accounting company and cannot advise you directly on financial or tax-based issues. Please consult an expert on your taxes and finances. Though now you have stuff to ask them.
Choose TerraFirma to fix your foundation, encapsulate you crawlspace, waterproof your basement, repair your concrete, or even tie your house to the foundation in case of earthquake. If it’s supporting your home, driveway, patio, retaining wall, or sidewalk, TerraFirma is the one to call.
Maximize your
Big Beautiful Bill Benefits
with tax-deductible
financing on home repairs
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There was a lot of talk about how Boastful & Boorish or Big & Beautiful the bill was going to be, but like it or not House Resolution 1 passed. So let’s talk about what’s in the “Big, Beautiful Bill” for homeowners.
I thought BBB stood for something else.
It does, but it might work as a good acronym for this too. Every two years we have an election, and the members of the House of Representatives and Senators are set and are called a Congress.
As of July 4th, 2025 we have had 119 such Congresses and the first resolution the House put to a vote was HR1 which included a myriad of different line items that change many of the policies and laws of the Federal Government of the United States.
Yeah, yeah, but how does it help homeowners?
Sorry, we just thought we’d give quick recap on how Congress works (or doesn’t as some might say).
Anyways looking through HR1 we found a few things that might be relevant to the customers of TerraFirma. They mostly include tax credits and exemptions. Let’s start with home equity.
You’re talking about Home Equity & Loans
You bet we are. You’ve either paid off some of your mortgage or your home has gone up in value since you bought it. Either way there’s value in your home you can tap into and that’s called home-equity.
HELoans
You can take out a Home Equity Loan to pull cash out of your house. If you are spending this money on home improvements for your primary or secondary home the interest is exemptible / tax deductible.
The interest on home loans up to $375,000 ($750,000 if married) can be deducted from the amount of money you earned in a year, reducing the taxes you owe. If your loans exceed the numbers above, then you just use the interest on the maximum amount )$375k or $750k if married). This was going to expire in 2025, HR1 made it permanent.
HELoC
Similar to a HELoan, a Home Equity Line of Credit works like a credit card that is secured by your home. It’s not as easy as having a card, but you write checks that work like swiping a card.
The interest from HELOCs work like the HELoans with the same limitations (home improvement, $375k/750k limits, exemptible, 2025).
PMI
Since the housing crash of 2008, any mortgage without 20% down requires Private Mortgage Insurance (PMI).
This is insurance you buy to protect the mortgage company in case you default on your loan. For Tax Year 2026 you can reduce your income by your PMI, reducing your taxes owed.
So that’s helpful for homeowners that need to make improvements on their home like fixing their foundation, encapsulating their crawlspace, waterproofing their basement, repair your concrete or even giving their home an earthquake retrofit. Paying less in taxes as a result of improving your home is nice, but there’s more.
If only we could deduct taxes…
Funny, but you’re actually right!
SALT – State And Local taxes can be deducted from our income. In 2025 you can deduct up to $40,000 from your income, but you have to choose State or Local taxes, not both.
Estate Tax – You can’t deduct this, but people can pass on more money when they pass away in 2026. The exempt limit was increased from $15 million to $30m.
There’s lots of opportunities for homeowners to pay less taxes.
Yeah, we heard about the solar stuff.
Oops, that’s one that didn’t make the cut. You need to take advantage of any Federal Government programs before 2026.
Solar – 2025 is the last year you can get a tax credit for 30% of what you spend on a solar install.
Green – 2025 is the last year you can get a credit for improving the energy efficiency of your home. There’s a lot of things that qualify: windows, insulation, HVAC, doors, wind turbines, fuel cells, etc.
All of these deductions can save you money if they exceed the standard deduction.
Can you do my taxes?
No. TerraFirma is not an accounting company and cannot advise you directly on financial or tax-based issues. Please consult an expert on your taxes and finances. Though now you have stuff to ask them.
Choose TerraFirma to fix your foundation, encapsulate you crawlspace, waterproof your basement, repair your concrete, or even tie your house to the foundation in case of earthquake. If it’s supporting your home, driveway, patio, retaining wall, or sidewalk, TerraFirma is the one to call.
