Download McGuire Sponsel’s Qualified Production Property (QPP) FAQ Guide for expert insights on IRS Notice 2026-16, QPP eligibility, depreciation elections, recapture rules, and cost segregation planning considerations.
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Qualified Production Property (QPP) FAQ Guide
IRS Notice 2026-16 introduced long-awaited interim guidance on the special depreciation allowance for Qualified Production Property (QPP) under Section 168(n). For CPAs advising capital-intensive manufacturers, agricultural producers, and facility investors, understanding how QPP works is critical before making an irrevocable election.
Download our Qualified Production Property FAQ Guide for a clear, practical breakdown of eligibility requirements, construction timing rules, mixed-use facility allocations, related-party considerations, and the 10-year recapture risk.
What You’ll Learn in This QPP FAQ Guide
This guide explains:
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What qualifies as Qualified Production Property under IRS Notice 2026-16
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Which activities meet the “substantial transformation” standard
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How QPP interacts with bonus depreciation and Section 179
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Construction start-date requirements and the 10% safe harbor rule
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Allocation methods for mixed-use facilities
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How cost segregation supports QPP planning
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ADS limitations and state conformity considerations
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The 10-year change-in-use recapture rule
Because the QPP election is current-year and irrevocable, proactive modeling and documentation are essential.
Why Qualified Production Property Planning Matters
The QPP special depreciation allowance allows taxpayers to deduct up to 100% of qualifying basis in the first year the property is placed in service. However, improper elections, misclassification of space, or state-level decoupling can materially affect tax outcomes.
This FAQ guide is designed to help CPAs and tax advisors evaluate:
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Whether a facility qualifies as QPP
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How to allocate costs appropriately
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When cost segregation is necessary
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How to balance QPP with bonus depreciation and §179
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Long-term planning implications if use changes
Download the guide to better understand how Qualified Production Property may impact your clients’ 2025 and future tax planning strategies.
Enter your information to download our complimentary guide.