What Do You Mean I Can Deduct My New Winery

OBBBA adds the ability to fully deduct a new building for production purposes

Photo by David Foodphototasty on Unsplash

The One Big Beautiful Bill made 100% bonus depreciation permanent for assets placed in service after January 19, 2025.

For 2025, farmers will be able to deduct 40% of the cost of buildings and equipment placed in service between January 1 and January 19, 2025. After January 19, the farmer will be able to fully deduct 100% of those purchases or they can make an election to continue to deduct 40% instead of 100%.

Many farmers also process their farm commodities such as a dairy farmer processing milk into cheese or a vineyard processing grapes into wine.

In the past, the construction of a cheese plant or winery was subject to very low-cost deductions. In most cases, the total value of the new building was allowed to be depreciated over 39 years (with some part of the building being depreciated faster in some cases).

OBBB now allows you to apply 100% bonus depreciation to these new buildings. In order to qualify, the farmer must: