Real estate Lawmakers may eliminate the business-related property tax deduction, risking increased tax burdens and economic consequences for businesses. Numerous media outlets have reported that lawmakers are under significant pressure to identify revenue offsets to finance a growing list of priorities in their fiscal and tax package. One such potential offset is the elimination or limitation of the business-related property tax deduction. This potential change in tax law has sparked concern, as a change to property tax deductibility could have significant consequences for commercial real estate owners, developers, and investors. Current tax treatment of business-related property taxes Under existing tax law, businesses can generally deduct property taxes on real estate used for business purposes as an ordinary and necessary business expense. This deduction is a fundamental component of tax policy and prevents businesses from being taxed twice — once on the value of their property and again on the income generated from it. For many companies — particularly those in real estate, manufacturing , and retail — property taxes represent a significant line item. What’s at stake? If Congress eliminates or limits the business-related property tax deduction, business owners may face increased tax burdens, especially in states with high property tax rates where the deduction helps mitigate operational costs. This change could result in reduced operating margins and cash flow for businesses, decreased real estate investment and development, higher costs passed on to consumers or tenants, and increased geographic tax disparities. Policymakers should carefully consider the broader economic consequences before making changes to this longstanding deduction, as it currently provides financial relief, frees working capital for reinvestment, and supports job creation and expansion. Call to action Real estate professionals and business owners are encouraged to contact their congressional representatives to express their concerns and advocate for the retention of the business-related property tax deduction. Their voices can make a difference in shaping the future of tax policy and promote a favorable business environment for all. This blog contains general information and does not constitute the rendering of legal, accounting, investment, tax, or other professional services. Consult with your advisors regarding the applicability of this content to your specific circumstances. © 2026 CliftonLarsonAllen. All rights reserved. "CliftonLarsonAllen" and "CLA" refer to CliftonLarsonAllen LLP. Securities and investment advisory services are offered through CliftonLarsonAllen Wealth Advisors, LLC, an SEC-registered investment advisor, member FINRA/SIPC. CliftonLarsonAllen is a Minnesota LLP, with more than 120 locations across the United States. The Minnesota certificate number is 00963. The California license number is 7083. The Maryland permit number is 39235. The New York permit number is 64508. The North Carolina certificate number is 26858. If you have questions regarding individual license information, please contact Elizabeth Spencer . CLA (CliftonLarsonAllen LLP), an independent legal entity, is a network member of CLA Global , an international organization of independent accounting and advisory firms. Each CLA Global network firm is a member of CLA Global Limited, a UK private company limited by guarantee. CLA Global Limited does not practice accountancy or provide any services to clients. CLA (CliftonLarsonAllen LLP) is not an agent of any other member of CLA Global Limited, cannot obligate any other member firm, and is liable only for its own acts or omissions and not those of any other member firm. Similarly, CLA Global Limited cannot act as an agent of any member firm and cannot obligate any member firm. The names “CLA Global” and/or “CliftonLarsonAllen,” and the associated logo, are used under license.