Modular Construction and the New Tax Landscape

Audree Grubesic. Jul 19, 2025. Updated Jul 21, 2025. The post discusses the “One Big Beautiful Bill” and its potential impact on modular construction, offsite construction, and commercial real estate.

Key tax changes mentioned

100% bonus depreciation: Businesses can immediately deduct the full cost of qualifying new and used equipment in the year it is placed in service.
Low-Income Housing Tax Credit (LIHTC): The post says the bill provides a boost for affordable housing development.
Opportunity Zones: The post says these zones are permanent and offer long-term tax incentives for investment in designated areas.

What the post says this means for modular construction

Modular factories may be able to write off equipment costs faster, including framing machines, welding gear, cranes, framing robots, and welding stations.
Affordable housing projects using modular systems may have stronger funding and tax support.
Projects in Opportunity Zones may be more attractive to investors.
The post frames the new law as supportive of faster, factory-built construction.

Three takeaways listed in the post

Equipment and factory investments may be fully deductible in year one.
Affordable housing projects may qualify for stronger tax credits and funding programs.
Opportunity Zone projects may be more investor-friendly, especially when paired with modular delivery.

FAQ highlights

Topic	Point made in the post
100% bonus depreciation	Reinstated by the One Big Beautiful Bill Act on July 4, 2025.
Modular company use	Can fully write off machinery and equipment in year one to improve cash flow.
LIHTC	Provides dollar-for-dollar federal tax credits for affordable housing development or rehabilitation.
Opportunity Zones	Can defer and potentially eliminate capital gains taxes when capital gains are invested in designated zones.

Closing note

The post presents the bill as a favorable policy shift for modular construction, offsite construction, and affordable housing.