Tax Deferrals, Grants, and Relief Aid Food Manufacturer’s Recovery from Fire

Client Profile

Industry: Food Manufacturing
Entity Type: S corporation
Ownership Structure: Family-owned
Geographic Footprint: East Coast
Annual Revenue: $600M
Number of Employees: 1,300


A warehouse fire damaged a food manufacturer tax client’s distribution operations. The company juggled routine business demands, making its insurance claim, and building a new distribution center in a different location. It had two years to complete the new facility before the insurance claim payment would generate taxable gain.


With our tax team’s assistance, the company minimized the tax impact related to the loss and rebuild of its warehouse. It deferred gain on the insurance claim proceeds and received support for a partially-refundable grant for solar panels damaged by the fire. A cost segregation study bifurcated the structural and non-structural components of the new plant into shorter life assets and helped maximize depreciation tax benefits. Undergoing a Section 179D study generated further tax savings.

We identified that the new build was in a Pennsylvania Keystone Opportunity Zone, a program that provides sales and use tax relief to building owners, and connected the manufacturer to a state training grant for the 160 new jobs created by moving the distribution facility to a new location.


All together, the food manufacturer experienced significant tax relief and benefits:

  • $35 million tax deferral
  • $40-60K of sales and use tax relief per year
  • $3.9 million training grant
  • $100K Section 179D Tax Savings

Download our case study

*MHM (Mayer Hoffman McCann P.C.) is an independent CPA firm that provides audit, review and other attest services, and works closely with CBIZ, a business consulting, tax and financial services provider. 

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Tax Deferrals, Grants, and Relief Aid Food Manufacturer’s Recovery from Fire Picture Tax Support for Your Operations2022-05-09T17:00:00-05:00

Whole Picture Tax Support for Your Operations

Planning & Tax MinimizationManufacturing & DistributionFederal TaxYes