Case Studies | Align Tax Consulting
Manufacturing Client Unlocks $800k in Financial Benefits
The Approach
A Midwest-based industrial equipment and component manufacturer operates out of a 100,000 sq foot facility and has an annual revenue of $25M. Despite steady growth, leadership noticed that increasing operational costs were hindering innovation.
Through a thorough evaluation and discovery process, including a detailed site visit, Align determined that the company qualified for 4 specialty tax incentives: Cost Segregation, Utility Sales Tax Exemption, R&D Tax Credit, and 179D Energy Efficiency Credit.
The company prioritized the first 3 strategies, and planned to implement energy efficiency initiatives in the future. The discovery process through completion spanned 4 months.
Key Findings
Cost Segregation Study
Building acquired for $8M in 2015 with substantial assets eligible for accelerated depreciation. $2M in assets reclassified to 5-,7-, and 15-year categories.
Utility Sales Tax
Electric & gas utility meters qualified for exemption. The 4-year retrospective refund was $200k; utility sales tax savings were $50k per year (permanently).
Qualifying R&D Credits
The following were determined to be qualifying R&D activities, totaling $1.2M: developing precision machinery, experimenting with lightweight materials, & creating prototypes.
Financial Impact
By activating these three strategies, the manufacturer unlocked over $800,000 in total Year 1 financial benefits, broken down as follows: $400,000 in tax savings from cost segregation (including bonus depreciation), $160,000 in claimed R&D tax credits, and $240,000 in utility sales tax savings and retrospective refunds.
Beyond the numbers, the impact was strategic. The company gained more than just tax savings—it gained momentum. With improved liquidity,
leadership began reinvesting in innovation, operational efficiency, and future-forward growth. Align’s strategic approach allowed them to reimagine what was possible—not by changing how they work, but by uncovering the full value of what they already do.
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