Top Cost Segregation Firms For New Construction And Build-To-Rent In 2027
David Roberts
Founder & CEO - ReVerb
11.12.2026
Last updated: November 12, 2026
The best cost segregation firms for new construction and build-to-rent in 2027 are KBKG, Engineered Tax Services and Duffy+Duffy, followed by Plante Moran, Capstan Tax Strategies and Madison SPECS. KBKG leads for developers who want depth on construction cost records, Engineered Tax Services for pairing studies with 45L and 179D, and Duffy+Duffy for LEED and green building projects.
New construction is the best time to do a study. Contractor pay applications, change orders and invoices let the engineer price each component directly instead of estimating, which makes the study more precise and more defensible. The One Big Beautiful Bill Act made 100% bonus depreciation permanent for qualifying property acquired after January 19, 2025, so reclassified components can often be deducted in the first year on the federal return.
This list is for developers, build-to-rent investors and owner-builders. For estimating partners, see our list of construction cost estimating services.
New Construction Cost Segregation Firms At A Glance
Firm
Location
Founded
Specialty
Best For
1. KBKG
Pasadena, CA (seven US offices)
1999
Tax credits and incentives with engineered studies
Developers with detailed cost records
2. Engineered Tax Services
West Palm Beach, FL
2001
Licensed engineering firm for specialty tax
Developers stacking incentives
3. Duffy+Duffy
Westlake, OH (Novi, MI office)
2002
Cost segregation only
LEED and green projects
4. Plante Moran
Southfield, MI
1924
Michigan-based accounting and advisory firm
Owner-builders
5. Capstan Tax Strategies
Jenkintown, PA
2015
Engineering-driven specialty tax for CRE
Commercial developers
6. Madison SPECS
Lakewood, NJ
2004
Cost segregation only, with in-house engineers
Repeat residential developers
7. CSSI
Baton Rouge, LA
Not published
Engineering-based cost segregation only
Large projects
8. CBIZ
Cleveland, OH
1996
National accounting and advisory firm
Developers who want in-house engineers
9. McGuire Sponsel
Indianapolis, IN
2007
Specialty tax partner to CPA firms
Developers whose CPA wants a partner
10. Salas O’Brien
San Jose, CA
Not published
Engineering firm with a cost segregation practice
Specialized new buildings
How We Evaluated These Firms
We looked for firms that work from construction cost records, coordinate with developers during the build, and can pair cost segregation with energy incentives such as 45L and 179D. We also weighed experience with build-to-rent communities, which combine many similar homes.
Rankings are editorial. No firm paid to be included.
Best Cost Segregation Firms For New Construction And Build-To-Rent In 2027
1. KBKG — Studies Built From Pay Applications And Change Orders
KBKG’s process starts with a review of all cost detail, including the general contractor’s applications for payment, construction invoices and change orders. It has offered cost segregation since 1999.
It also handles 45L for residential developers, and its seven US offices cover developers working in several markets.
Best for: Developers who want a study built directly from construction records.
Engineered Tax Services publishes new construction studies, such as a fitness center in Vineland, New Jersey that produced more than $2.4 million in first-year tax savings, and it also runs 45L and 179D programs.
As a licensed engineering firm, it can certify energy incentives alongside the study.
Best for: Developers who want cost segregation and energy incentives from one firm.
3. Duffy+Duffy — Known For LEED-Certified Buildings
Duffy+Duffy focuses only on cost segregation and is known for its work on LEED-certified properties. Its team includes CPAs, estimators and construction engineers.
It provides an estimate of benefits and a flat-fee quote before work begins.
Best for: Developers of green and LEED-certified buildings.
4. Plante Moran — Construction Expertise Inside An Accounting Firm
Plante Moran’s cost segregation practice is led by a licensed Michigan builder with a construction management degree. It published a case study in which a real estate company saved about $2 million in taxes on a new building, starting from contractor invoices.
Its construction and real estate practices can support the developer through the build.
Best for: Owner-builders who want an accounting firm with construction expertise.
Capstan Tax Strategies uses degreed engineers and has completed more than 8,000 studies. It covers new construction alongside acquisitions and renovations.
It also handles tangible property regulation questions that come up as projects are placed in service in phases.
Best for: Commercial developers placing buildings in service in phases.
6. Madison SPECS — Repeat Studies For Residential Developers
Madison SPECS works only on cost segregation and has handled repeat studies for residential developers. Its in-house engineers travel to document each property.
That suits build-to-rent developers delivering many similar homes or buildings.
Best for: Build-to-rent and residential developers with repeat projects.
CSSI has completed more than 20,000 studies on properties valued from $200,000 to $1.5 billion, and it also handles 179D.
It suits large ground-up commercial and mixed-use projects.
Best for: Developers of large ground-up projects.
8. CBIZ — In-House Engineers For Faster Turnaround
CBIZ keeps its cost segregation engineers in-house rather than outsourcing them, which it says speeds up turnaround.
Developers already using CBIZ for accounting can keep the study in the same relationship.
Best for: Developers who want an integrated national firm.
9. McGuire Sponsel — Engineers Working Through The Developer’s CPA
McGuire Sponsel partners with CPA firms and conducts on-site inspections to document depreciable property, with engineers, accountants and consultants on staff.
It suits developers whose CPA wants to keep control of the return.
Best for: Developers whose CPA prefers a specialist partner.
10. Salas O’Brien — Design-Level Engineering Knowledge
Salas O’Brien is a large engineering firm that performs cost segregation, including studies on newly built facilities.
Its engineers understand building systems at the design level, which helps on specialized new construction.
Best for: Developers of specialized buildings with complex systems.
How To Choose A Cost Segregation Firm For New Construction
When Should You Engage The Firm?
Ideally before or during construction, so cost records are organized to support the study.
Will It Work From Your Pay Applications?
Ask whether the firm prices components from actual invoices rather than estimates.
Build-to-rent and multi-building projects are placed in service in phases. The study should match.
Is Audit Support Included?
Confirm audit support.
Frequently Asked Questions
When is the best time for a cost segregation study on new construction?
During or right after construction, while invoices and change orders are fresh.
Does build-to-rent benefit from cost segregation?
Yes. Each home contains appliances, finishes and site work that can move into shorter lives, and the work repeats across the community.
Can developers who sell use cost segregation?
Generally no. Cost segregation applies to property held for rental or business use, not inventory built for sale.
Can a study be done after the project is finished?
Yes, though it is more precise when cost records are organized during the build.
Conclusion
KBKG, Engineered Tax Services and Duffy+Duffy are the strongest picks for new construction, with Plante Moran, Capstan and Madison SPECS close behind. Choose a firm early so the study is built from your own cost records.
