Cost Segregation & Infrastructure Capital Recovery

Alpha Consulting US provides Engineering-Appraisal-Based Cost Segregation for complex, capital-intensive assets where conventional real estate depreciation materially understates economic recovery.

Our methodology integrates engineering system understanding with appraisal discipline to properly abstract non-depreciable land, reconcile total project basis, and allocate qualifying tangible assets in a manner that is technically sound, economically consistent, and defensible under IRS examination.

This approach is essential for infrastructure-heavy assets—such as data centers, energy facilities, and industrial plants—where power, mechanical, process, and support systems dominate total capital investment.

Many cost segregation studies rely primarily on component identification without a controlling valuation framework. In complex assets, that approach often results in:

• Improper treatment of non-depreciable land
• Incomplete reconciliation to total depreciable basis
• Misclassification of infrastructure systems
• Increased IRS audit exposure
   

Our Engineering-Appraisal-Based methodology places valuation discipline in control, with engineering cost analysis used as supporting evidence, not a substitute for appraisal judgment.

Key principles include:

• Proper abstraction of land and site economics
• Full reconciliation to total project basis
• Function-driven classification of tangible assets
• Documentation aligned with IRS expectations for complex properties
   

Modern infrastructure assets are not defined by square footage. They are defined by:

• Power density and redundancy
• Critical systems and uptime requirements
• Process-driven layouts
• Scalability and phased development
• Long-lead, high-value equipment
   

Cost segregation must therefore follow systems and function, not generic building categories.

Our cost segregation services are purpose-built for infrastructure-intensive properties, including:

Power- and cooling-dominant facilities where electrical, mechanical, network, and redundancy systems drive depreciation outcomes.

→ Data Center Cost Segregation

Infrastructure and support assets such as electrical systems, balance-of-plant components, auxiliary buildings, and site improvements.

→ Nuclear Facilities Cost Segregation

Process-driven plants with high concentrations of Qualified Production Property (QPP), specialized foundations, and equipment-adjacent infrastructure.

→ Industrial & Manufacturing Cost Segregation

Cost segregation is performed as part of a broader capital recovery and valuation framework.

When applicable, our work is coordinated with:

• Bonus depreciation and QPP strategies
• Investment and production tax credits (ITC / PTC)
• Valuation and financing events
• Capital planning and asset life analysis
• Cross-border FDI structures (when present)
   

This ensures depreciation strategy aligns with capital economics, not just tax compliance.

Our studies are designed to be:

• Appraisal-disciplined
• Engineering-informed
• Internally reconciled
• Audit-ready
   

Each engagement emphasizes:

• Clear scope definition
• Transparent allocation logic
• Reconciliation to total basis
• Documentation suitable for IRS review
   

• Upon placement in service
• At acquisition
• After expansion or retrofit
• For campus or phased developments
• In connection with valuation or financing decisions
   

Cost segregation for infrastructure assets is not a commodity service.

An Engineering-Appraisal-Based Cost Segregation study aligns depreciation outcomes with how assets are actually designed, built, and capitalized—while maintaining defensibility independent of market cycle or calendar year.

• Data Center Cost Segregation
• Nuclear Facilities Cost Segregation
• Industrial & Manufacturing Cost Segregation
   

If your asset is infrastructure-heavy, power-intensive, or process-driven, you may have material depreciation classification opportunity—but only if the study is performed with appraisal discipline and system-level understanding.