Aug. 24 at 10:58 PM
$ARTW Key provisions for farm buildings under the "Big Beautiful Bill"
The OBBB Act provides federal tax advantages for farmers' investments and passes on assets. It does not directly create state or local building code exemptions.
Expanded expensing (Section 179): The maximum deduction for equipment and certain other property—including single-purpose agricultural structures—permanently increased to
$2.5 million for property placed in service after 2024.
Permanent 100% bonus depreciation: The bill made 100% bonus depreciation permanent for qualified property purchased after January 19, 2025. This allows farmers to immediately write off the entire cost of new equipment and certain building upgrades.
Increased estate tax exemption: The federal estate and gift tax exemption was permanently raised to
$15 million per individual (indexed for inflation) beginning in 2026. This helps family farms pass their operations to the next generation without having to sell land to cover federal taxes.
