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Cost Segregation is an engineering-based tax study that reclassifies components of a building from 27.5 or 39-year property to shorter-lived 5, 7, or 15-year property. This dramatically accelerates your depreciation deductions, providing significant cash flow in early years. For a $2M commercial building, a Cost Segregation study might reclassify $600K–$800K into shorter-lived categories, generating $200K–$400K+ in additional first-year deductions when combined with current bonus depreciation rules.

Any U.S. business that develops or improves products, processes, software, formulas, or techniques may qualify. The IRS uses a four-part test: (1) the activity must eliminate technical uncertainty, (2) involve experimentation, (3) be technological in nature, and (4) relate to a new or improved function, performance, reliability, or quality. Industries that frequently qualify include technology, software, manufacturing, food & beverage, agriculture, engineering, architecture, and healthcare — among many others.

Yes. A "look-back" Cost Segregation study allows you to claim all the accelerated depreciation you missed since you acquired the property — in a single year — via a Form 3115 change in accounting method. You do not need to amend prior returns. The catch-up deduction is taken in the current year. This is one of the most powerful planning tools available to long-term property owners.

Section 179D is a federal deduction for energy-efficient improvements to commercial buildings (including multi-family buildings 4+ stories). The Inflation Reduction Act expanded the maximum to $5.00/sqft (up from $1.88) for buildings meeting the highest efficiency thresholds. It now applies to retrofits of existing buildings (not just new construction), and the allocable benefit can be assigned to the designers of government-owned buildings — including engineers, architects, and contractors.

AIR offers both fixed-fee and contingency-based fee structures depending on the service and client preference. We discuss fee structures transparently during the feasibility analysis — before any commitment. We do not take engagements where the expected benefit doesn't substantially exceed the cost of the study.

AIR provides full audit representation at no additional charge for examinations related to work we performed. Our studies are built with IRS examination in mind — the documentation, methodology, and workpapers are designed to satisfy every element of the applicable Audit Technique Guides. In the event of an examination, our team works directly with the IRS on your behalf.

These incentives are available to businesses of any size. Cost Segregation studies are typically most valuable on properties with $500K+ in depreciable basis, but smaller properties may still qualify depending on construction type and property class. R&D credits have no minimum revenue requirement — in fact, startups with no income can use them to offset payroll taxes. We assess every client situation individually during the analysis.

You submit basic information about your property, business, or project through our contact form. Our team reviews it and, within one business day, schedules a brief call. On that call, we provide a preliminary estimate of potential benefits across all applicable services and explain exactly what a full engagement would involve — fees, timeline, and deliverables. No obligation, no pressure. If the numbers don't work for you, we'll tell you.