Most industrial real estate owners treat taxes as an end-of-year bill, but in 2026, the tax code is actually your biggest tool for building wealth. In this episode of Adding Value, I sit down with Jason Melillo, CEO of KBKG and a national expert on tax credits and incentives. We break down the massive impact of the "One Big Beautiful Bill," which brought back 100% Bonus Depreciation, and how you can use it to shield your cash flow immediately. Whether you own a small warehouse in the Inland Empire or manage an institutional portfolio, this conversation reveals how to front-load your deductions and maximize your basis through cost segregation.
In this episode, we cover:
✅ How 100% Bonus Depreciation works for industrial assets.
✅ The "Catch-Up" Trick: How to get deductions for properties you’ve owned for years.
✅ Why car washes and "Special Purpose" buildings are tax goldmines.
✅ Energy incentives (179D) and the "Green Building" advantage in California.
Special Offer for Viewers:
Jason has provided a 10% discount on cost segregation studies for smaller projects ($1.5M and under) via CostSegregation.com.
Discount Code: value2026
Timestamps
[00:00] Cold Open: Why your tax return is a Day 1 strategy.
[01:04] The Impact of the "One Big Beautiful Bill" on 2026 transactions.
[03:08] How 100% Bonus Depreciation actually works (Year 1 Pop).
[05:15] The history of KBKG and making Cost Segregation accessible.
[07:11] Cost Segregation 101: Front-loading your deductions.
[08:42] The "Catch-Up" Rule: Getting tax breaks on buildings you already own.
[11:17] How long does a Cost Segregation study take?
[13:58] Why Institutional Investors use Cost Seg to boost ROI.
[15:35] Managing after-tax income during high interest rates and tariffs.
[17:10] State Incentives (SILA) and the reshoring of manufacturing.
[18:41] Professional Advice: How Savvy Investors stay "Tax Free."
[21:24] Repairs vs. Capitalization: What to do when you replace a roof.
[22:15] Section 179D: Getting paid by the government for energy efficiency.
[25:13] The "Real Estate Professional" vs. Passive Taxpayer rules.
[27:56] Why Car Washes are 100% deductible in one year.
[30:37] 2026 Forecast: Why deal-making is picking up in Q2 and Q3.
[32:05] Why you should run a "Benefit Estimate" before you buy.
[34:39] Special Discount Code (value2026) for viewers.