UNLOCK YOUR HIDDEN CAPITAL
Cost segregation studies are a strategic tax planning tool that is completed in order to maximize federal income tax depreciation deductions by identifying fixed assets and their costs.
This engineering-based study gives you an exact tax plan to accelerate property depreciation and helps cut your costs on any real estate that has been constructed, remodeled or purchased. It allows for real and personal property to be categorized into acquisition/construction costs and then applied to the appropriate IRS tax credit.
Go green, save green
179D is a tax incentive that is available for newly constructed or renovated buildings that have installed energy-saving elements. This tax deduction provides tax-saving benefits for commercial building owners, as well as architectural and design firms that have worked on projects for public agency-owned facilities.
Originally passed under the 2005 Energy Policy, the 179D tax provision allows a tax deduction of up to $5 per square foot for both new and existing buildings.
Schedule a free consultation with our team
of experts to learn more!
We’ve Saved Our Clients
Millions
Through a cost segregation study, properties can be reclassified from a standard 39-year depreciable life to a 5, 7, or 15-year depreciable life, which enhances federal tax credit savings, and improves cash flow. Building and property owners are also able to retrieve missed deductions from previous years.
Almost any property from any company or industry can benefit from a cost segregation study. National Tax Group has performed cost segregation studies for a variety of industries over the last 20 years and have saved our clients millions in tax incentives. If your business owns property, chances are you can increase your cash flow with this tool.
Businesses like restaurants, hotels, apartment buildings, and commercial property have the most to gain from a cost segregation study. These businesses typically have the most lucrative outcomes from utilizing this tax tool.
Here Are Some of Our Clients' Success Stories:
Commercial Building Owners
Total Deduction:
$7 MM
Project Types Include:
- Retail Spaces
- Car Dealerships
- Logistics Centers
- Data Centers
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Architects & Designers
Total Deduction:
$11.2 MM
Project Types Include:
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Total Deduction:
$11.2 MM
Project Types Include:
- List Item #1
- List Item #2
- List Item #3
WE HELP OWNERS FROM ALL INDUSTRIES
Restaurants
Hotels
Commercial Property
Apartment Buildings
Why choose National Tax Group’s Cost Segregation Services?
With the combined expertise of engineers, construction specialists, and accounting professionals, we can handle complex and time-sensitive cost segregation studies. Our main objective is to facilitate maximum tax savings and improve cash flow.
There are many projects that business owners, companies, and individuals can do in order to speed up depreciation deductions.
A property is eligible for a cost segregation study at any time before, during and after a remodel or construction of a property. Through our experience, National Tax Group recommends that the ideal time to complete a study is during the first year a building is constructed, purchased or remodeled. However, a cost segregation can almost always benefit a building owner. For those who are in the works with an architect and are planning a construction or remodeling, the best time to perform a study with us is before the building is set.
Our analysts and accountants will thoroughly evaluate your assets. Then a licensed deduction calculator is used to identify assets that will be segregated. Once the site visitation procedure is complete, the study will take up to 4 weeks to complete.
Projects that are ideal for Cost Segregation Studies include:
- The construction of new buildings
- The renovation or expansion of existing buildings
- The purchase of a building
- The renovation of a leased building
For federal income tax purposes, building costs are classified into 3 main types:
- Tangible property
- Land improvements
- Real property
How do Cost Segregation Studies work?
- On-site auditing Service benchmarking
- Documentation as per IRS guidelines
- Tax deduction strategies
- Appropriate allocation of all indirect costs
- Identifying substantial amounts of accelerated depreciation
- KPI measurement
- Legal compliance
- Final reports for easy-to-use data for tax planning
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TESTIMONIALS
What Our Clients Are Saying
How Do You Qualify Based on Your Industry?
The 179D Tax Deduction is for Architects, Engineering Firms, Commercial Building Owners, and Construction Firms. This deduction is especially profitable for renovation projects, usually performed by these professional teams.
Qualifying Energy-Savings Are All Around You
It can be difficult to figure out if your building’s energy efficiency improvements qualify for this deduction. National Tax Group makes it easy with an in-depth study of your project and how it qualifies.
EPAct 179D studies are applicable for the following:
- New construction of commercial buildings
- Upgrades, renovations and retrofits, improvements to lighting, HVAC, envelope (roof, insulation, and windows), energy performance contracting, CRA redevelopment
- LEED-certified buildings
- Green/energy-efficient buildings
- Residential apartment buildings
- Public buildings
How Do You Qualify Based on Your Industry?
The 179D Tax Deduction is for Architects, Engineering Firms, Commercial Building Owners, and Construction Firms. This deduction is especially profitable for renovation projects, usually performed by these professional teams.
Qualifying Energy-Savings Are All Around You
It can be difficult to figure out if your building’s energy efficiency improvements qualify for this deduction. National Tax Group makes it easy with an in-depth study of your project and how it qualifies.
EPAct 179D studies are applicable for the following:
- New construction of commercial buildings
- Upgrades, renovations and retrofits, improvements to lighting, HVAC, envelope (roof, insulation, and windows), energy performance contracting, CRA redevelopment
- LEED-certified buildings
- Green/energy-efficient buildings
- Residential apartment buildings
- Public buildings
We are excited to announce that after years of legislation
179D & 45L have been extended
Lighting
Interior & Parking Garages
.60¢ Per Sq. Ft.
HVAC
Heating, Cooling, Ventilation and Hot Water
.60¢ Per Sq. Ft.
Building Envelope
Envelope Systems, Windows, Doors, Roofs and Insulation
.60¢ Per Sq. Ft.
80,000 X $1.80 = $144,000
179D Qualification Requirements
179D Qualification Requirements
| Properties Placed in Service 2023-2032 | ||||
|---|---|---|---|---|
| Project Tier | Bonus Requirements | Energy Savings | Base Deduction | Max Deduction |
| Base Tier | None | 25-50% | $0.50/sqft | $1.00/sqft |
| Bonus Tier | Prevailing Wage and Apprenticeship Program | 25-50% | $2.50/sqft | $5.00/sqft |
| Properties Placed in Service 2006-2022 | ||||
|---|---|---|---|---|
| Qualifying Components | Estimated Tax Deduction | |||
| Before 2021 | 2021 | 2022 | ||
| Fully Qualified Property | $1.80/sqft | $1.82/sqft | $1.88/sqft | |
| Partially Qualified Property | Envelope | $0.60/sqft | $0.61/sqft | $0.63/sqft |
| HVAC | ||||
| Lighting | ||||
How Do You Qualify Based on Your Industry?
The 179D Tax Deduction is for Architects, Engineering Firms, Commercial Building Owners, and Construction Firms. This deduction is especially profitable for renovation projects, usually performed by these professional teams.
Qualifying Energy-Savings Are All Around You
It can be difficult to figure out if your building’s energy efficiency improvements qualify for this deduction. National Tax Group makes it easy with an in-depth study of your project and how it qualifies.
EPAct 179D studies are applicable for the following:
- New construction of commercial buildings
- Upgrades, renovations and retrofits, improvements to lighting, HVAC, envelope (roof, insulation, and windows), energy performance contracting, CRA redevelopment
- LEED-certified buildings
- Green/energy-efficient buildings
- Residential apartment buildings
- Public buildings
GO GREEN, SAVE GREEN
179D is a tax incentive that is available for newly constructed or renovated buildings that have installed energy-saving elements. This tax deduction provides tax-saving benefits for commercial building owners, as well as architectural and design firms that have worked on projects for public agency-owned facilities.
Originally passed under the 2005 Energy Policy, the 179D tax provision allows a tax deduction of up to $5 per square foot for both new and existing buildings.