Childcare Center cost segregation in Texas.

Why childcare centers reclassify well in Texas

Texas has no state income tax and is the largest U.S. state for new commercial construction. Heavy industrial, multifamily, energy-sector, and hospitality activity make it the largest single state for cost segregation engagements.

Childcare Center properties have a particular profile that makes cost segregation especially valuable: playground, fencing, dedicated kitchen and laundry, casework. The shell sits on a 39-year recovery period under MACRS — but every childcare center is hundreds of components, many of which qualify for 5-, 7-, or 15-year recovery and accelerated bonus depreciation.

Typical reclassification ratio

For a childcare center in Texas, TDA studies typically reclassify 25–32% of depreciable basis. Combined with 100% OBBBA bonus depreciation on property acquired and placed in service after January 19, 2025, that translates the entire reclassified amount into a year-one deduction.

Texas markets we serve

We deliver childcare center cost segregation studies across Texas, including Houston, San Antonio, Dallas, Austin, Fort Worth. Engineering-based methodology and RSMeans cost data on every engagement.