CliftonLarsonAllen recently shared exciting news for manufacturers: the newly enacted One Big Beautiful Bill Act introduces a transformative tax incentive — the Qualified Production Property deduction — offering significant opportunities for immediate savings on manufacturing-related property investments. This provision allows manufacturers to fully deduct the cost of eligible real property — such as structural components, HVAC systems and lighting — used directly in production facilities, bypassing decades-long depreciation schedules. To take advantage, projects must start after Jan. 19, 2025, and be operational before Jan. 1, 2031.

Only property directly supporting manufacturing — such as production-area equipment and systems — qualifies, while offices and warehouses are excluded. Conducting a cost-segregation study can help identify eligible components and maximize your available tax deductions.

Don’t miss out on this opportunity to boost your bottom line. Consult your tax advisor today to plan new construction or facility upgrades and unlock the full potential of this tax break. 10/20/2025