Case Study: Multi-Billion Dollar European Manufacturing Company Achieves $600K NPV Tax Savings with SC&H Group Cost Segregation

Cost Segregation Accounting Advantages For Multi-State Distribution Centers

A multi-billion dollar European manufacturing company was struggling to keep its U.S. distribution centers competitive, as slower fulfillment capabilities put major clients at risk. To support renovation and equipment upgrades while preserving cash flow, the company turned to SC&H Group for a cost segregation study to better classify construction and equipment costs for tax purposes.

SC&H Group reviewed $13 million in renovation-related costs, analyzed tax depreciation schedules, construction records, and drawings, and reclassified $3.7 million of assets from 39-year property into 15-, 7-, and 5-year lives. The result was $600,000 in net present value savings and an additional $2.5 million in depreciation deductions over the first five years, helping the company reduce tax burden and free up cash for further improvements.