QPP Calculator

Qualified Production Property Tax Benefit Calculator

See how a new facility, or a building expansion built with Eagan Building Group may accelerate your first-year depreciation under the Qualified Production Property Deduction.

Your Project

Enter rough figures. Everything updates as you adjust.

Total construction / project value

$500K$50M

Facility square footage

5,000500,000

Qualified production activity

Must involve "substantial transformation" of inputs into a new product per IRS Notice 2026-16.

Qualifying space %

30%100%

Portion of the building used as an integral part of production. Offices, parking, sales, lodging, and finished-goods storage do not qualify.

Apply 95% de minimis safe harbor (treats 100% of building as QPP if 95%+ qualifies)

Entity type

Pass-through rate reflects 37% top bracket with §199A QBI deduction applied.

Effective federal tax rate

10%40%

Eligibility window check

Construction begins between Jan 20, 2025 and Dec 31, 2028 Placed in service between July 4, 2025 and Dec 31, 2030

Eligible window

Estimated Tax Impact

Illustrative only. See disclaimer below.

First-Year Tax Savings Acceleration

$0

Additional cash kept in year one vs. 39-year straight-line depreciation

Eligible QPP Basis

$0

100% Year-1 Deduction

$0

Y1 Tax Savings w/ QPP

$0

% of Project Cost (Y1)

0.00%

Year-1 tax savings: standard depreciation vs. QPP

39-Yr Straight-Line$0

STANDARD

§168(n) QPP Election$0

QPP

Cumulative tax savings by year

§168(n) QPP Election 39-Yr Straight-Line

Shown for the first 10 years, which aligns with the §168(n) change-of-use recapture window.

Get your personalized estimate

Download a PDF of these results and we'll email a copy to you for your records. We'll also have an EBG team member reach out if you'd like to talk through your project.

Disclaimer: This calculator provides general estimates for illustrative purposes only. Results are not guaranteed and do not constitute tax advice. The Qualified Production Property deduction under IRC §168(n) carries a 10-year change-of-use recapture period and requires an affirmative election on a timely filed return. Eligibility depends on the specific activity, property use, ownership structure, and compliance with IRS Notice 2026-16. Consult a qualified CPA or tax professional to determine your eligibility and actual tax benefit.

Start the conversation.

These numbers are a starting point. Eagan Building Group can give you budget clarity, timing considerations, and a clearer picture of whether your project is ready to move forward.

Start with a Planning Conversation

Whether expanding production, renovating operations, or building new, every project begins with structured preconstruction planning to align scope, budget, and timeline before construction begins.