The company engaged the Tax team at Springline to conduct an estimated benefit analysis to evaluate if a cost segregation study, a tax analysis performed by an engineering firm, would benefit the company. The study works to identify specific property components and reclassify them into shorter depreciation recovery periods for tax purposes. Despite the age of the building and past depreciation, the study identified shorter-life assets at the site – including wiring and piping related to the manufacturing process – that qualified for “bonus depreciation,” a tax incentive that allows a business to deduct 100% of the cost of qualifying new and used assets in the first year they’re placed in service.