A Blog About Tax Savings for Building Owners

Tag: Warehouse

Amazon Spends $12 Million on 104 Acres to Develop a Warehouse in Fountain Inn

Amazon Closed on 104 acres in Fountain Inn, SC.

There has been lots of news of late about Amazon expanding in the Upstate of South Carolina. The Greenville County Council voted to approve the fee in lieu tax incentive to give them a break for the next 10 years as long as they do what they say they are going to do.

It’s expected that the warehouse will employ more than 200 people. The Post & Courier is reporting that Amazon will spend more than $47.5MM on the project. I don’t know if that includes the $12,638,960 to purchase the land.

I happened to be going through some closed sales information and saw that Amazon closed on the 104 acre parcel located just outside the City of Fountain Inn’s city limits. It’s right off of I-385 and Fairview Road Extension. It’s a great location. I’m not sure what the plans are to possibly modify that exit and entrance ramp there but it needs some help. It’s almost like it’s an after thought. I was down there the other day at 4pm and it sure seemed like a great place for possible accidents on the interstate as people try to take that short little exit that is often congested at that time of day.

179D Energy Efficient Tax Deduction – Benefits 39 Year Class Life Property

New warehouses are great for 179D Energy Efficiency Tax Deduction

179D Energy Efficiency Tax Deduction

There are many nuances and variables with this tax deduction for commercial building owners and it’s not quite that easy to say who and how one qualifies for this. The laws changed recently which do affect buildings placed initially into service in 2023 / 2024. It used to be owners could get up to $1.80/SF for a tax deduction but now it’s been revised upward to $5/SF. Here’s the official IRS web page for the 179D deduction.

It’s really designed for buildings with about 40,000 SF or more given the math between the cost of the study and the tax deduction. It might make sense at 30-35,000.

But let’s say you have a 100,000 SF building. It might qualify for up to $5/SF which would be a $500,000 tax deduction. The interesting thing is this deduction is not subject to the current bonus depreciation schedule so you get 100% of this tax deduction. The other thing that I think is very powerful is this deduction hits your depreciation schedule and reduces the 39 year class life property. Most of us are used to the 5 and 15 year class life deductions with cost segregation and the use of bonus depreciation. This hits the 39 year line…nothing hits the 39 year line unless it’s 179D or a partial asset disposition.

This works if you are the initial owner / developer of the building. If you are the second, third, fourth owner etc., it does not work unless you’ve done some significant improvements including lighting, HVAC, building envelop and/or roof. But I know there are some significant buildings out there where those kinds of renovations are being done. They always should get a cost segregation study done for those improvements but you should also evaluate 179D.
hashtag#179D hashtag#costsegregation hashtag#taxdeduction hashtag#buildingowners hashtag#39yearclasslife hashtag#energyefficient hashtag#commercialbuildings hashtag#industrial

© 2025 Cost Seg Building

Theme by Anders NorenUp ↑