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QPP Calculator

The One Big Beautiful Bill Act created the Qualified Production Property (QPP) provision, which may allow a 100% first-year depreciation deduction for qualifying portions of certain U.S. nonresidential facilities used in manufacturing, refining, or certain production activities, costs that would otherwise be recovered over 39 years.

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.

$50K$25M
1,000100,000
Must involve "substantial transformation" of inputs into a new product per IRS Notice 2026-16.
30%100%
Share of the building used as an integral part of the qualified production activity. Typically excluded: offices, admin and sales space, R&D, parking, lodging, finished-goods storage, and sitework / land improvements.
Pass-through rate reflects 37% top bracket with §199A QBI deduction applied.
10%40%
User-supplied modeling assumption. Your actual effective rate depends on entity structure, taxable income, state taxes, AMT, and other items your CPA will evaluate.
Eligibility window check
Within window
Must be on or after Jan 20, 2025 and on or before Dec 31, 2028.
Within window
Must be on or after July 4, 2025 and on or before Dec 31, 2030. Should also be after your construction start date.
Eligible window

Estimated Tax Impact

Illustrative only. See disclaimer below.

Estimated Year-1 Cash-Tax Benefit
$0
Acceleration of deduction 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 produces an illustrative estimate that is reasonable based on the assumptions you entered. It is not tax advice, and Eagan Building Group is a design-build general contractor, not a tax advisor. Actual eligibility and benefit depend on facts and circumstances not captured here, including your entity structure, ownership, taxable income, activity-specific "substantial transformation" test, integral-part-of-production analysis, and final IRS guidance under IRC §168(n). The deduction is available only for property whose construction begins on or after January 20, 2025 and that is placed in service on or before December 31, 2030, and is subject to a 10-year change-of-use recapture period. Interim guidance is described in IRS Notice 2026-16; final regulations may change the analysis. State income-tax treatment varies by state and is not reflected in these numbers. Always confirm eligibility and the actual tax benefit with a qualified CPA or tax professional before relying on these figures.

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.

Read more about QPP on our Blog

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