Credits and deductions
Tax incentives worth the study fee, and the ones that aren't
Cost segregation, the R&D credit, hiring credits, and the energy deductions. What the study costs, what it returns, and where the break-even sits.
These are fee-against-benefit decisions, not yes-or-no ones. A study or a credit claim costs real money up front, so the only question that matters is where your numbers cross the break-even, and that point moved in 2026 when 100% bonus depreciation came back.
100%
Bonus depreciation, 2026
Restored by the One Big Beautiful Bill for property acquired after January 19, 2025.
$5k–$15k
Cost segregation study
Usually pays above roughly $500,000 of building basis; below that the fixed fee eats the benefit.
14%
R&D credit, simplified method
Of qualified spend above half your prior three-year average. 6% if you have no base. IRC 41(c)(5).
Closed
WOTC, 179D and 45L
WOTC lapsed December 31, 2025; 179D and 45L closed to new work after June 30, 2026.
The trap: a deferral is not a discount
Cost segregation pulls deductions forward, it does not create them. Expensing the short-life property now means later years have nothing left to depreciate, and a sale can recapture part of it. The real gain is the time value of the money, which is large if you hold the building and small if you are about to sell.
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179D and 45L: the energy tax breaks just closed
The One Big Beautiful Bill sunset the 179D deduction and the 45L credit, both closed for projects after June 30, 2026. What they were worth, and what still counts.
Bonus depreciation in 2026: back to 100%
Bonus depreciation is back to a permanent 100% for assets acquired after January 19, 2025. What it means for equipment, buildings, and cost segregation.
Cost segregation study cost, and when it pays
A cost segregation study runs $5,000 to $15,000 and can free a six-figure first-year deduction with 100% bonus back in 2026. When it pays, and when to skip it.
R&D tax credit: rate, rules, and study cost
The federal R&D credit is 14% of qualified research spend above a base, or 6% first-time. What it is worth, what qualifies, and whether a study pays.
WOTC in 2026: expired, but file Form 8850 anyway
The Work Opportunity Tax Credit expired December 31, 2025 and is in hiatus. Why the 28-day filing deadline still matters, and what employers should do now.