North Dakota real estate is entering a new phase. On July 4, 2025, Congress passed the One Big Beautiful Bill, a wide-ranging tax and economic reform package that is already reshaping how investors think about property, income, and long-term strategy.

Combined with the continued economic momentum in Western North Dakota, this legislation is creating real opportunity across the Bakken region.

Here’s what you need to know.

What the “Big Beautiful Bill” Actually Includes

The bill permanently locks in Trump-era tax cuts, raises the SALT (State and Local Tax) deduction cap to $40,000 for five years, and makes the mortgage interest deduction permanent.

For real estate, several new or expanded provisions stand out:

• Bonus depreciation is fully restored to 100 percent through 2027

• Opportunity Zones and Low-Income Housing Tax Credits (LIHTC) have been expanded

• Funding reductions to SNAP, Medicaid, and energy incentives may shift affordability dynamics in some rental markets

These changes are not just policy headlines. They reshape the financial foundation of real estate investment, especially in markets like Williston and Watford City that are still gaining national attention.

Bonus Depreciation Is Back

Bonus depreciation allows property owners to deduct the full cost of qualifying improvements in the same year those improvements are placed into service. For commercial and industrial property owners, developers, and short-term rental hosts who meet material participation standards, this change improves early returns.

Improvements such as HVAC systems, roofing, flooring, lighting, and appliances now qualify for full first-year deductions.

For example, a $100,000 renovation to a commercial building can now be fully deducted this year rather than depreciated over 27.5 or 39 years. That improves cash flow and makes it easier to reinvest profits quickly.

Why Investors Are Looking at North Dakota

These tax changes align with strong fundamentals already unfolding in the state.

North Dakota offers:

• A business-friendly tax environment that now stacks well with federal incentives

• Multiple Opportunity Zones across the Bakken with improved long-term investor benefits

• Ongoing demand for commercial and industrial space in energy, logistics, and related sectors

• Cap rates that remain attractive compared to major metros

This is a compelling mix for strategic investors who want cash flow, appreciation, and tax efficiency in one place.

What This Means for Owners, Buyers, and Residents

Homeowners benefit from a locked-in mortgage interest deduction and expanded SALT relief that support long-term equity growth.

Commercial investors are seeing the numbers work in their favor with stronger write-offs, more financing options, and reduced long-term risk.

Local renters could experience affordability pressure as federal aid programs are scaled back, which may increase demand for workforce housing in the region.

Developers now have clearer pathways to access both federal and local incentives. This is particularly meaningful for mixed-use and infrastructure-based projects in designated Opportunity Zones.

Trends We’re Watching in the Bakken

We continue to see strength in light industrial, trucking and service-based spaces, as well as land near transportation corridors. Leasing velocity remains solid and investor interest in redevelopment opportunities is growing.

Many property owners are re-engaging paused projects, exploring subdividing industrial land, or upgrading buildings now that bonus depreciation is back on the table.

Final Takeaway

Between new federal tax policy and the Bakken's real estate momentum, the timing to invest, renovate, or list could not be better. Whether you're repositioning a building, evaluating land, or thinking about your next commercial purchase, this is a window worth considering carefully.

Let’s run the numbers and talk about what this means for your goals.