Tax Benefits and Accelerated Depreciation
An Arizon air-supported building offers a number of financial benefits in addition to low cost-per-square-foot upfront pricing. There are important tax and depreciation benefits to consider when comparing an air-supported building to other types of construction. Such benefits may make an air-supported building more attractive, especially for new businesses.
If a structure is not inherently permanent, the property will be considered tangible personal property and not be subject to real estate taxes.
Depreciable Tax Savings of Air Structures vs. Conventional Buildings
Figures are based on an assumed cost of $1 million per structure at a tax rate of 40%. The allowable depreciation of an air structure in its second year of life is $244,900, resulting in tax savings of $97,960. In contrast, a similarly valued building only depreciates $25,641 in its second year, for a tax savings of only $10,256.