- What Is IRS Notice 2026-16?
- Key Requirements
- Why This Matters
What Is IRS Notice 2026-16?
If you are in construction accounting, this is the news you have been waiting for. The new Section 168(n) allows taxpayers to elect a 100% depreciation deduction on qualified production property—essentially factory buildings used in manufacturing.
Key Requirements
✅ Construction must BEGIN after January 19, 2025
✅ Property placed in service before 2031
✅ Applies to new factory builds and eligible components
Why This Matters
This is not a phase-down. It is full immediate expensing. This is the biggest depreciation benefit since bonus depreciation was made permanent.
Who Qualifies?
Construction companies building new facilities, manufacturers expanding production capacity, and anyone investing in qualified manufacturing buildings may benefit from this deduction.
We Can Help
We serve clients nationwide via phone and Zoom. Let us help you determine if your construction project qualifies for this major tax benefit.
About the Author
Jason Astwood, Fractional CFO & Tax Strategist
As an IRS Enrolled Agent* and Financial Services Certified Professional®, Jason is a trusted authority in taxation, financial strategy, and business growth. He is the author of The S-Corp Playbook and the Director of Union National Tax, bringing over two decades of expertise in proactive tax planning, financial management, and compliance. Jason specializes in helping business owners minimize tax liability, optimize cash flow, and build long-term financial success. His combined expertise as a tax strategist, financial advisor, and Fractional CFO empowers entrepreneurs to scale their businesses with confidence.
