Section 179

Deductions and Bonus Depreciation

ClearSpan is always trying to find our customers helpful options for saving money, whether it’s through government grants or tax incentives. One of the more helpful tax advantages our team has found is Section 179. Many of our agricultural customers purchasing a single-purpose structure qualify for Section 179, which provides significant tax deductions and bonus depreciation. Those that are eligible may receive a deduction of up to $1,220,000 with a capital purchase limit of $3,050,000. This is more than a 5% increase from 2023, so there is no better time than now to utilize Section 179.

Bonus depreciation has also changed over the last year. Currently, it stands at 60% in 2024, while in the prior it was 80%. It’s important to note that bonus depreciation will drop in the upcoming years. It will go down to 40% in 2025, 20% in 2026 and 0% in 2027 and the following years.

To find out how Section 179 can potentially impact your building purchase and to get an estimated savings, visit the Section 179 Tax Deduction Calculator.

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What businesses and purchases qualify?

When trying to figure out if you can take advantage of Section 179, it is essential to first find out if the IRS considers the potential recipient an agricultural business. To be considered, businesses must cultivate or operate a farm OR aim to generate a profit or gain as the tenant or owner of a farm.

If the business falls into either of those categories, it’s time to see if the purchase itself qualifies.

ClearSpan buildings that qualify are single-purpose structures that are used to support livestock and its end products, structures that store feed, as well as any buildings used to house equipment necessary for livestock.

Examples of eligible structures include:

  • Livestock Barns
  • Storage Barns
  • Feed Storage Buildings
  • Greenhouses
  • Poultry Houses
  • Milking Parlors

Those that qualify will have to complete the 4562 Form. It is important to submit this form each year during depreciation. If you need help filling out the 4562 form, here are some helpful instructions from the IRS.

Additionally, reviewing the Farmer’s Tax Guide may also be helpful.Â