I’ve seen a lot of legislation in my decades as a commercial real estate broker, but few come with a name as audacious as the “One Big Beautiful Bill.”

It sounds like something you’d hear shouted over the din of a campaign rally or stitched onto a souvenir T-shirt. But behind the marketing glitz lies a bill that, if passed, could reshape the commercial property business — particularly for those of us who live and work in the golden state of California.

The Congressional Budget Office said the bill would add nearly $3.3 trillion onto the nation’s debt load from 2025 to 2034, a nearly $1 trillion increase over the House-passed version of the bill.

Let’s break down what it means for commercial real estate.

At its core, the bill proposes a return to 100% bonus depreciation. In plain English: property owners and developers would once again be able to expense the entire cost of certain building improvements in the year those costs are incurred. Think HVAC upgrades, lighting retrofits, or a full-blown tenant improvement package.

For owners sitting on aging assets or brokers like me helping clients reposition their properties, this is a game-changer. It’s fuel for reinvestment, and it arrives just when many buildings need a refresh to stay competitive in a post-pandemic world.

But wait, there’s more. The bill also boosts the Qualified Business Income deduction for pass-through entities, including many real estate partnerships, and raises the cap on the SALT deduction for individuals earning less than $500,000.

For Californians, who have long borne the brunt of SALT limitations, that’s more than a footnote. It’s meaningful tax relief that could free up capital for additional investment.

Of course, every rose has its thorn. And this one comes in the form of Section 899 — a “revenge tax” aimed at foreign investors from countries with so-called discriminatory tax laws. The details are still fuzzy, but the risk is clear: if foreign capital dries up, so too may some of the momentum behind major commercial developments, especially in coastal markets. Last week, Congressional Republicans agreed to remove the revenge tax provision after a request by Treasury Secretary Scott Bessent.

And then there’s the rollback of green energy incentives. As someone who’s witnessed the growing appetite for ESG (Environmental, Social, Governance)-friendly buildings, this move feels like a step backward. Cutting 179D deductions and other sustainability carrots might please certain constituencies, but it runs the risk of dulling progress just when tenants and investors are demanding greener spaces.

As of this writing, the bill has passed the House and is under active consideration in the Senate. With several provisions drawing bipartisan attention — both supportive and critical — the coming days will determine whether this sweeping legislation becomes law, gets trimmed down, or stalls altogether. CRE stakeholders are watching closely.

So, is this bill truly beautiful? That depends on where you stand. For investors, developers and brokers who appreciate certainty, tax relief, and pro-growth measures — it’s attractive. For those relying on foreign capital or green incentives — it’s a mixed bag.

Like any piece of sweeping legislation, the devil is in the details. But if you work in commercial real estate — or if you occupy a building, own one, or hope to invest in one — this bill deserves your attention.

Because love it or hate it, “beautiful” bills don’t come around every day.

Allen C. Buchanan, SIOR, is a principal with Lee & Associates Commercial Real Estate Services in Orange. He can be reached at abuchanan@lee-associates.com or 714.564.7104.