Not only do we provide independent appraisal and engineering services, but we also deliver dependable cost segregation analyses to separate project costs into income tax recovery periods for depreciation purposes pursuant to the Modified Accelerated Cost Recovery System. The segregation of projects costs is a critical aspect in project financing, particularly for renewable projects where state and federal incentives such as investment tax credits and accelerated depreciation apply only to specific documented cost categories.
The importance of a detailed cost segregation analysis is paramount in these circumstances and our experience with renewable technology has given us formidable depth in analyzing project costs. As part of DAI’s cost segregation analysis, we can identify the project’s eligible basis for the federal investment tax credit under Internal Revenue Code (“IRC”) § 48, relying on various tax authorities, including the IRC, U.S. Treasury regulations, rulings and procedures issued by the Internal Revenue Service, court decisions, and other relevant guidance to support these critical conclusions.
