WQOW reported that Midwest farm operators are moving quickly to upgrade grain storage facilities before year-end to capitalize on expanded federal tax deductions under the One Big Beautiful Bill Act.
The legislation, signed July 4, 2025, raises the Section 179 deduction limit to $2,560,000 for 2026 and permanently restores 100% bonus depreciation for qualifying property. The IRS explicitly categorizes grain storage structures as eligible equipment.
Farm managers can deduct full acquisition and installation costs against current income rather than spreading expenses across multi-year depreciation schedules. Grain Supply LLC, a Litchfield, Minnesota-based distributor, reported increased demand for complete grain bin packages as producers work to meet statutory deadlines for 2026 write-offs.
