Tax abatements in yield on cost calculation for development

For a school project, when modeling a stabilized yield on cost, would I include the present value of a tax abatement in my initial cost basis? I am seeking to purchase the property and develop a special purpose building. The abatement is not currently in place and would only be in place for the special purpose building. Assuming development costs of $600/SF, and NOI of $5.534MM, using a 4.5% cap rate and a 40% profit margin to come to a 6.30% yield on cost basis. My total development costs are $87,841,270, leaving a land residual value of $27,841,270. My uses for the development are currently $61.5MM in debt and $26.35MM in equity, but not sure where to incorporate the PV of the abatement in year 0. Should I just add the PV of the abatement to my development costs, increasing my proportional debt and equity? I assume doing so would lower my land residual value.