When it comes to single-purpose agricultural structures (SPAS), you would generally qualify for:
- a Section 179 deduction of up to $500,000 in 2010 and 2011;
- bonus depreciation on the remainder of the cost (for new construction in 2010); and
- the net remaining amount being depreciated over 10 years, not 20 years
SPAS are defined as single-purpose livestock structures or single-purpose horticultural structures.
A single-purpose livestock structure is any structure specifically designed, constructed and used (1) for housing, raising and feeding a particular type of livestock and its produce (such as eggs from a chicken), or (2) for housing the equipment necessary for housing, raising and feeding such livestock.
SPAS
A hog confinement facility, milking parlor, etc., qualifies. A structure that handles more than one type of livestock does not qualify. A building with movable wall partitions that is used to store grain and machinery does not normally qualify for Section 179.
