Skip to main content

Cost Segregation Studies for Manufacturing Facilities

Cost segregation studies identify and reclassify building components to shorter recovery periods, accelerating depreciation and providing significant tax savings. For manufacturing facilities, this can result in substantial cash flow improvements and reduced tax liability through strategic depreciation optimization.

Key Benefits of Cost Segregation

Maximize your manufacturing facility investments with strategic cost segregation analysis and implementation.

Accelerated Depreciation

Identify and reclassify building components to shorter recovery periods, accelerating depreciation and providing significant tax savings.

Immediate Tax Savings

Typical tax savings of 5-15% of building cost in the first year, with accelerated depreciation over the first 5-7 years.

Manufacturing Facilities

Applicable to new construction, acquisitions, and renovations of manufacturing facilities and industrial buildings.

Retroactive Studies

Retroactive studies available for buildings placed in service within the last 15 years, providing immediate benefits.

Combined Benefits

Can be combined with Section 179 and bonus depreciation for maximum tax benefits on facility investments.

Cost Segregation Study Process

Our comprehensive approach ensures maximum tax benefits while maintaining full compliance and documentation.

Study Components

  • Detailed engineering analysis of building components and systems
  • Identification of components eligible for shorter recovery periods (5, 7, or 15 years)
  • Documentation and substantiation of cost allocations
  • Integration with overall tax strategy and business planning
  • Ongoing support for future construction and renovation projects

Our Process

1

Facility Analysis

Comprehensive engineering analysis of your manufacturing facility and building components.

2

Component Identification

Identification of components eligible for shorter recovery periods and accelerated depreciation.

3

Documentation

Thorough documentation and substantiation of cost allocations for compliance.

4

Implementation

Integration with overall tax strategy and ongoing support for future projects.

Ready to accelerate your manufacturing facility depreciation?

Our manufacturing tax experts will conduct comprehensive cost segregation studies to maximize your facility depreciation and provide significant tax savings.