The One Big Beautiful Bill Act (OBBBA) introduced a powerful tax incentive for businesses that invest in qualifying facilities: 100% first-year depreciation for nonresidential real estate classified as qualified production property (QPP). For manufacturers, agricultural producers, and similar businesses, this provision can significantly accelerate deductions and reduce tax obligations. But with substantial opportunity comes substantial complexity. The IRS recently issued interim guidance in Notice 2026-16, addressing key questions around eligibility, elections, essential activity requirements, and a critical recapture rule that businesses cannot afford to overlook. Contact your Vasquez + Company tax advisor for guidance on how this provision may apply to your situation. Read the full article here.

Our firm provides the information for general guidance only, and does not constitute the provision of legal advice, tax advice, accounting services, investment advice, or professional consulting of any kind. The information provided herein should not be used as a substitute for consultation with professional tax, accounting, legal, or other competent advisers. Before making any decision or taking any action, you should consult a professional adviser who has been provided with all pertinent facts relevant to your particular situation. This article is not intended to be used, and cannot be used by any taxpayer, for the purpose of avoiding accuracy-related penalties that may be imposed on the taxpayer. The information is provided “as is,” with no assurance or guarantee of completeness, accuracy, or timeliness of the information, and without warranty of any kind, express or implied, including but not limited to warranties of performance, merchantability, and fitness for a particular purpose.