Rev. Proc. 77-10
Rev. Proc. 77-10; 1977-1 C.B. 548
DOCUMENT ATTRIBUTES
- Cross-Reference
26 CFR 601.105: Examination of returns and claims for refund, credit,
or abatement; determination of correct tax liability.
(Also Part I, Section 167; 1.167(a)-11.)
- Code Sections
- LanguageEnglish
- Tax Analysts Electronic Citationnot available
Citations: Rev. Proc. 77-10; 1977-1 C.B. 548
Superseded by Rev. Proc. 83-35 Modified by Rev. Proc. 82-67 Modified by Rev. Proc. 80-58 Modified by Rev. Proc. 80-15 Modified by Rev. Proc. 79-65 Modified by Rev. Proc. 79-64 Modified by Rev. Proc. 79-60 Modified by Rev. Proc. 79-42 Modified by Rev. Proc. 79-41 Modified by Rev. Proc. 79-35 Modified by Rev. Proc. 79-26 Modified by Rev. Proc. 78-5 Modified by Rev. Proc. 78-4 Modified by Rev. Proc. 77-14
Section 1. Purpose.
.01 The purpose of this Revenue Procedure is to restate, pursuant to sections 167(m) and 263(e) of the Internal Revenue Code of 1954, with certain substantive modifications as noted below, the asset guideline classes, asset guideline depreciation periods and ranges, and annual asset guideline repair allowance percentages for the Class Life Asset Depreciation Range (CLADR) System.
.02 This Revenue Procedure supersedes Rev. Proc. 72-10, 1972-1 C.B. 721, and the supplements and revisions of the asset guideline classes, periods, and repair allowance percentages published since the publication of Rev. Proc. 72-10. These Revenue Procedures are as follows:
73-2, 1973-1 C.B. 747
73-3, 1973-1 C.B. 749
73-23, 1973-2 C.B. 474
73-24, 1973-2 C.B. 475
73-25, 1973-2 C.B. 477
73-26, 1973-2 C.B. 479
73-27, 1973-2 C.B. 480
73-28, 1973-2 C.B. 482
73-30, 1973-2 C.B. 484
74-27, 1974-2 C.B. 480
74-28, 1974-2 C.B. 481
74-29, 1974-2 C.B. 482
74-30, 1974-2 C.B. 483
74-31, 1974-2 C.B. 487
74-32, 1974-2 C.B. 487
74-37, 1974-2 C.B. 491
74-50, 1974-2 C.B. 506
76-16, 1976-1 C.B. 556
76-17, 1976-1 C.B. 557
76-18, 1976-1 C.B. 559
76-27, 1976-2 C.B. 644
76-37, 1976-2 C.B. 659
77-2, page 534
77-3, page 535
77-8, page 541
.03 In addition, certain changes are made in the numbering system of asset guideline classes to facilitate the understanding and use of the CLADR system.
Broad title headings and asset guideline class number designations for several related guideline classes have been deleted wherever feasible to eliminate confusion over the appropriate asset guideline class number designations.
The asset guideline classes for "Office Furniture, Fixtures, and Equipment," "Information System," and "Data Handling Equipment, except Computers," were established in Rev. Proc. 73-2 as asset guideline classes 70.11, 70.12, and 70.13, respectively. These classes have been redesignated asset guideline classes 00.11, 00.12, and 00.13, respectively. In addition, the asset guideline class for Industrial Steam and Electric Generation and Distribution Systems, designated asset guideline class 49.5, has been redesignated asset guideline class 00.4. The redesignations group these asset guideline classes with certain other asset guideline classes by types of depreciable assets rather than by the activity or the product of an activity.
.04 Numerous changes and modifications have been made to the language of the asset guideline class descriptions. These changes are not intended to modify the composition of the existing classes of Rev. Proc. 72-10.
.05 The following substantive modifications of the classes of Rev. Proc. 72-10 have been made:
(i) Assets used in the ginning of cotton have been reclassified from class 39.0 to class 01.1.
(ii) Assets used by plumbing contractors have been reclassified from class 70.2 to class 15.1.
(iii) The description of assets included in class 15.2, "Marine Contract Construction," has been modified to be consistent with Rev. Proc. 66-18, 1966-1 C.B. 646.
(iv) Subclass 49.121, "Electric Utility Nuclear Fuel Assemblies," is part of class 49.12, "Electric Utility Nuclear Production Plant," to which it is related. Assets included in subclass 49.121 are not separately subject to possible exclusion from an election to apply section 1.167(a)-11(b)(5)(v) of the regulations. See Section 2.02(i) of this Revenue Procedure.
Sec. 2. Rule of Application
.01 The asset guideline classes, asset guideline periods and ranges, and annual asset guideline repair allowances percentages set forth are for use under the rules set forth in section 1.167(a)-11 of the Income Tax Regulations.
.02 It should be noted that the following special rules apply as specified:
(i) It is expressly provided that asset guideline classes and subclasses 00.4, 20.5, 30.11, 30.21, 32.11, 33.11, 33.21, 34.01, 35.11, 35.21, 36.11, 37.12, 37.32, 37.33, and 49.121 are part of existing activity classes to which the assets included in them relate as stated in the Revenue Procedures establishing these subclasses; therefore, assets included in these classes and subclasses are not separately subject to possible exclusion from an election to apply section 1.167(a)-11(b)(5)(v) of the regulations.
(ii) "Service assets," as defined in classes 50.1 and 70.21, the cost of which is properly deductible under section 162 of the Code, are not eligible property under the CLADR system. Further, service assets may be treated as mass assets as defined in section 1.47-1(e)(4) of the regulations. Service assets may be depreciated under a method not described in section 167(b)(1), (2), or (3), if the requirements of section 1.167(a)-11(b)(5)(v) are met.
(iii) If the asset guideline class repair allowance for class 32.1 is elected in accordance with section 1.167(a)-11(d)(2)(ii) of the regulations, "cold tank repairs," including refractory relining expenditures to glass furnaces, shall be treated as deductible repairs within the provisions and limitations of section 1.167(a)-11(d)(2)(iv)(a) dealing with the application of the asset guideline class repair allowance.
(iv) General rebuilding or rehabilitation costs for the special tools defined in class 30.11 that have been traditionally capitalized as the cost of a new asset are included in class 30.11.
(v) Asset guideline class 00.3, "Land Improvements," includes "other tangible property" that qualifies under section 1.48-1(d) of the regulations. However, a structure that is essentially an item of machinery or equipment or a structure that houses property used as an integral part of an activity specified in section 48(a)(1)(B)(i) of the Code, if the use of the structure is so closely related to the use of the property that the structure clearly can be expected to be replaced when the property it initially houses is replaced, is included in the asset guideline class appropriate to the equipment to which it is related.
.03 Property that is used predominantly outside the United States may be eligible property if the requirements of section 1.167(a)-11(b)(2) of the regulations are met. In the case of property first placed in service and used predominantly outside the United States during the taxable year of election, an asset guideline period, but no asset depreciation range is in effect. Accordingly, such property shall not be treated as included in the same asset guideline class as property used predominantly inside the United States, for purposes of determining the asset depreciation period under section 1.167(a)-11(b)(4). Thus, for this purpose each asset guideline class described in this Revenue Procedure has an exact counterpart that consists of property otherwise includable within the class, but used predominantly outside the United States during the taxable year of election. Generally, for this purpose property is used predominantly outside the United States if such property is physically located outside the United States during more than 50 percent of days of the taxable year of election, beginning with the date the property is first placed in service. However, there are ten exceptions to this general rule and these are contained in section 48(a)(2) of the Code. The asset depreciation period for property, which is determined in the taxable year of election, will not be changed because of a change in predominant use after the close of such taxable year. Although treated as in a separate class for purposes of determining the asset depreciation period, property predominantly used outside the United States shall be included in the same asset guideline class as property predominantly used inside the United States for purposes of applying the asset guideline class repair allowance under section 1.167(a)-11(d)(2).
Sec. 3. Asset Guideline Classes and Periods, Asset Depreciation Ranges, and Annual Asset Guideline Repair Allowance Percentages.
The asset guideline classes, asset guideline periods, asset depreciation ranges, and annual asset guideline repair allowance percentages are prescribed as set forth below:
--------------------------------------------------------------------
Asset depreciation
range (in years) Annual
-------------------- asset
Asset Asset guideline
guide- guide- repair
line Description of Lower line Upper allowance
class assets included limit period limit percentage
--------------------------------------------------------------------
SPECIFIC DEPRECIABLE ASSETS USED IN ALL BUSINESS ACTIVITIES, EXCEPT
AS NOTED:
00.11 Office Furniture,
Fixtures, and Equipment:
Includes furniture and
fixtures which are not
a structural component
of a building. Includes
such assets as desks,
files, safes, and
communications equip-
ment. Does not include
communications equip-
ment that is included
in other CLADR classes ___ 8 10 12 2
00.12 Information Systems:
Includes computers and
their peripheral equip-
ment used in administe-
ring normal business
transactions and the
maintenance of business
records, their retrieval
and analysis.
Information systems are
defined as:
1) Computers: A computer
is an electronically
activated device capable
of accepting information,
applying prescribed
processes to the infor-
mation, and supplying
the results of these
processes with or without
human intervention. It
usually consists of a
central processing unit
containing extensive
storage, logic, arith-
metic, and control
capabilities. Excluded
from this category are
adding machines, elec-
tronic desk calculators,
etc.
2) Peripheral equipment
consists of the auxiliary
machines which may be
placed under control of
the central processing
unit. Non limiting
examples are: Card
readers, card punches,
magnetic tape feeds,
high speed printers,
optical character
readers, tape cassettes,
mass storage units,
paper tape equipment,
keypunches, data entry
devices, teleprinters,
terminals, tape drives,
disc drives, disc files,
disc packs, visual image
projector tubes, card
sorters, plotters, and
collators. Peripheral
equipment may be used
on-line or off-line.
Does not include equip-
ment that is an integral
part of other capital
equipment and which is
included in other CLADR
classes of economic
activity, i.e., compu-
ters used primarily for
process or production
control, switching and
channeling _______________ 5 6 7 7.5
00.13 Data Handling Equipment,
except Computers:
Includes only typewriters,
calculators, adding and
accounting machines,
copiers, and duplicating
equipment ________________ 5 6 7 15
00.21 Airplanes (airframes and
engines), except those
used in commercial or
contract carrying of
passengers or freight,
and all helicopters
(airframes and engines) __ 5 6 7 14
00.22 Automobiles, Taxis ______ 2.5 3 3.5 16.5
00.23 Buses ___________________ 7 9 11 11.5
00.241 Light General Purpose
Trucks:
Includes trucks for use
over the road (actual
unloaded weight less
than 13,000 pounds) ______ 3 4 5 16.5
00.242 Heavy General Purpose
Trucks:
Includes heavy general
purpose trucks, concrete
ready-mix truckers, and
ore trucks, for use over
the road (actual unloaded
weight 13,000 pounds or
more) ____________________ 5 6 7 10
00.25 Railroad Cars and Loco-
motives, except those
owned by railroad
transportation compa-
nies _____________________ 12 15 18 8
00.26 Tractor Units For Use
Over-The-Road ____________ 3 4 5 16.5
00.27 Trailers and Trailer-
Mounted Containers _______ 5 6 7 10
00.28 Vessels, Barges, Tugs,
and Similar Water
Transportation Equip-
ment, except those used
in marine contract
construction _____________ 14.5 18 21.5 6
00.3 Land Improvements:
Includes improvements
directly to or added to
land, whether such
improvements are section
1245 property or section
1250 property, provided
such improvements are
depreciable. Examples of
such assets might include
sidewalks, roads, canals,
waterways, drainage faci-
lities, sewers, wharves
and docks, bridges,
fences, landscaping,
shrubbery, or radio and
television transmitting
towers. Does not include
land improvements that
are explicitly included
in any other class, and
buildings and structural
components as defined in
section 1.48-1(e) of the
regulations. Excludes
public utility initial
clearing and grading land
improvements as specified
in Rev. Rul. 72-403,
1972-2 C.B.102. __________ 20
00.4 Industrial Steam and
Electric Generation
and/or Distribution
Systems:
Includes assets, whether
such assets are section
1245 property or 1250
property, providing such
assets are depreciable,
used in the production
and/or distribution of
electricity with rated
total capacity in excess
of 500 Kilowatts and/or
assets used in the
production and/or
distribution of steam
with rated total ca-
pacity in excess of
12,500 pounds per hour,
for use by the taxpayer
in his industrial manu-
facturing process or
plant activity and not
ordinarily available for
sale to others. Does not
include buildings and
structural components as
defined in section
1.48-1(e) of the regu-
lations. Assets used to
generate and/or distri-
bute electricity or steam
of the type described
above of lesser rated
capacity are not
included, but are
included in the appro-
priate manufacturing
equipment classes
elsewhere specified.
Steam and chemical
recovery boiler systems
used for the recovery
and regeneration of
chemicals used in manu-
facturing, with rated
capacity in excess of
that described above,
with specifically
related distribution and
return systems are not
included but are included
in appropriate manufactu-
ring equipment classes
elsewhere specified. An
example of an excluded
steam and recovery boiler
system is that used in
the pulp and paper manu-
facturing industry _______ 22.5 28 33.5 2.5
DEPRECIABLE ASSETS USED IN THE FOLLOWING ACTIVITIES:
01.1 Agriculture:
Includes machinery and
equipment, grain bins,
and fences but no other
land improvements, that
are used in the produc-
tion of crops or plants,
vines, and trees;
livestock; the operation
of farm dairies, nurse-
ries, greenhouses, sod
farms, mushroom cellars,
cranberry bogs, apiaries,
and fur farms; the per-
formance of agricultural,
animal husbandry, and
horticultural services ___ 8 10 12 11
01.11 Cotton Ginning Assets ____ 9.5 12 14.5 5.5
01.21 Cattle, Breeding or Dairy 5.5 7 8.5
01.22 Horses, Breeding or Work 8 10 12
01.23 Hogs, Breeding ___________ 2.5 3 3.5
01.24 Sheep and Goats, Breeding 4 5 6
01.3 Farm Buildings ___________ 20 25 30 5
10.0 Mining:
Includes assets used
in the mining and
quarrying of metallic
and non-metallic mine-
rals (including sand,
gravel, stone, and
clay) and the milling,
beneficiation and
other primary pre-
paration of such mate-
rials _________________ 8 10 12 6.5
13.1 Drilling of Oil and Gas
Wells:
Includes assets used in
the drilling of onshore
oil and gas wells and
the provisions of geo-
physical and other
exploration services;
and the provision of such
oil and gas field services
as chemical treatment,
plugging and abandoning of
wells and cementing or
perforating well casings.
Does not include assets
used in the performance
of any of these activities
and services by integra-
ted petroleum and natural
gas producers for their
own account ______________ 5 6 7 10
13.2 Exploration for and
Production of Petro-
leum and Natural Gas
Deposits:
Includes assets used by
petroleum and natural gas
producers for drilling of
wells and production of
petroleum and natural
gas, including gathe-
ring pipelines and
related storage faci-
lities ___________________ 11 14 17 4.5
13.3 Petroleum Refining:
Includes assets used for
the distillation, frac-
tionation, and catalytic
cracking of crude petro-
leum into gasoline and its
other components _________ 13 16 19 7
13.4 Marketing of Petroleum
and Petroleum Products:
Includes assets used in
marketing petroleum and
petroleum products, such
as related storage faci-
lities and complete
service stations, but not
including any of these
facilities related to
petroleum and natural gas
trunk pipelines __________ 13 16 19 4
15.1 Contract Construction
Other than Marine:
Includes assets used by
general building, special
trade, and heavy cons-
truction contractors.
Does not include assets
used by companies in
performing construction
services for their own
account __________________ 4 5 6 12.5
15.2 Marine Contract Cons-
truction:
Includes assets used by
general building, special
trade, and heavy cons-
truction contractors pre-
dominantly in marine
construction work. Does
not include assets used
by companies in perfor-
ming marine construction
services for their own
account except for floa-
ting, self-propelled,
and other drilling plat-
forms and support vessels
used in offshore drilling
for oil and gas which are
included whether used for
their own account or
others ___________________ 9.5 12 14.5 5
20.1 Manufacture of Grain
and Grain Mill Products:
Includes assets used in
the production of flours,
cereals, livestock feeds,
and other grain and grain
mill products ____________ 13.5 17 20.5 6
20.2 Manufacture of Sugar
and Sugar Products:
Includes assets used in
the production of raw
sugar, syrup, or finished
sugar from sugar cane or
sugar beets ______________ 14.5 18 21.5 4.5
20.3 Manufacture of Vegetable
Oils and Vegetable Oil
Products:
Includes assets used in
the production of oil from
vegetable materials and
the manufacture of rela-
ted vegetable oil
products _________________ 14.5 18 21.5 3.5
20.4 Manufacture of Other
Food and Kindred Products:
Includes assets used in
the production of foods
and beverages not included
in classes 20.1, 20.2 and
20.3 _____________________ 9.5 12 14.5 5.5
20.5 Manufacture of Food and
Beverages-Special
Handling Devices:
Includes assets defined
as specialized materials
handling devices such as
returnable pallets,
palletized containers,
and fish processing
equipment including
boxes, baskets, carts,
and flaking trays used in
activities as defined in
classes 20.1, 20.2, 20.3,
20.4. Does not include
general purpose small
tools such as wrenches
and drills, both hand and
power-driven, and other
general purpose equipment
such as conveyors, trans-
fer equipment, and mate-
rials handling devices ___ 3 4 5 20
21.0 Manufacture of Tobacco
and Tobacco Products:
Includes assets used in
the production of ciga-
rettes, cigars, smoking
and chewing tobacco,
snuff, and other tobacco
products _________________ 12 15 18 5
22.1 Manufacture of Knitted
Goods:
Includes assets used in
the production of knitted
and netted fabrics and
lace. Assets used in yarn
preparation, bleaching,
and dyeing, printing, and
other similar finishing
processes, texturing, and
packaging, are elsewhere
classified _______________ 6 7.5 9 7
22.2 Manufacture of Yarn,
Thread, and Woven Fabric:
Includes assets used in
the production of spun
yarns including the pre-
paring, blending, spin-
ning, and twisting of
fibers into yarns and
threads, the preparation
of yarns such as twis-
ting, warping, and
winding, the production
of covered elastic yarn
and thread, cordage,
woven fabric, tire
fabric, braided fabric,
twisted jute for packing,
mattresses, pads, sheets,
and industrial belts, and
the processing of textile
mill waste to recover
fibers, flocks, and shod-
dies. Assets used to
manufacture carpets, man-
made fibers, and non-
wovens, and assets used
in texturing, bleaching,
dyeing, printing, and
other similar finishing
processes, are elsewhere
classified _______________ 9 11 13 16
22.3 Manufacture of Carpets,
and Dyeing, Finishing, and
Packaging of Textile
Products:
Includes assets used in
the production of
carpets, rugs, mats,
woven carpet backing,
chenille, and other
tufted products, and
assets used in the
joining together of
backing with carpet yarn
or fabric. Includes
assets used in washing,
scouring, bleaching,
dyeing, printing, drying,
and similar finishing
processes applied to
textile fabrics, yarns,
threads, and other tex-
tile goods. Includes
assets used in the pro-
duction and packaging of
textile products, other
than apparel, by creasing,
forming, trimming,
cutting, and sewing, such
as the preparation of
carpet and fabric samples,
or similar joining toge-
ther processes (other than
the production of scrim
reinforced paper products
and laminated paper pro-
ducts) such as the sewing
and folding of hosiery and
panty hose, the creasing,
folding, trimming, and
cutting of fabrics to
produce nonwoven products,
such as disposable diapers
and sanitary products.
Assets used in the manu-
facture of nonwoven carpet
backing, and hard surface
floor covering such as
tile, rubber, and cork,
are elsewhere classified 7 9 11 15
22.4 Manufacture of Textured
Yarns:
Includes assets used in
the processing of yarns
to impart bulk and/or
stretch properties to
the yarn. The principal
machines involved are
falsetwist, draw, beam-to-
beam, and stuffer box
texturing equipment and
related high-speed
twisters and winders.
Assets, as described
above, which are used to
further process man-made
fibers are elsewhere
classified when located
in the same plant in an
integrated operation
with man-made fiber
producing assets. Assets
used to manufacture man-
made fibers and assets
used in bleaching, dyeing,
printing, and other simi-
lar finishing processes,
are elsewhere classified 6.5 8 9.5 7
22.5 Manufacture of Nonwoven
Fabrics:
Includes assets used in
the production of non-
woven fabrics, felt goods
including felt hats,
padding, batting, wadding,
oakum, and fillings, from
new materials and from
textile mill waste. Non-
woven fabrics are defined
as fabrics (other than
reinforced and laminated
composites consisting of
nonwovens and other pro-
ducts) manufactured by
bonding natural and/or
synthetic fibers and/or
filaments by means of
induced mechanical inter-
locking, fluid entangle-
ment, chemical adhesion,
thermal or solvent
reaction, or by combina-
tion thereof other than
natural hydration bonding
as occurs with natural
cellulose fibers. Such
means include resin
bonding, web bonding,
and melt bonding. Spe-
cifically includes
assets used to make
flocked and needle
punched products other
than carpets and rugs.
Assets, as described
above, which are used to
manufacture nonwovens are
elsewhere classified when
located in the same plant
in an integrated operation
with man-made fiber
producing assets. Assets
used to manufacture man-
made fibers and assets
used in bleaching, dyeing,
printing, and other
similar finishing pro-
cesses, are elsewhere
classified _______________ 8 10 12 15
23.0 Manufacture of Apparel
and Other Finished
Products:
Includes assets used in
the production of clothing
and fabricated textile
products by the cutting
and sewing of woven
fabrics, other textile
products, and furs; but
does not include assets
used in the manufacture
of apparel from rubber
and leather ______________ 7 9 11 7
24.1 Cutting of Timber:
Includes logging ma-
chinery and equipment
and roadbuilding equip-
ment used by logging and
sawmill operators and pulp
manufacturers for their
own account ______________ 5 6 7 10
24.2 Sawing of Dimensional
Stock from Logs:
Includes machinery and
equipment installed in
permanent or well-esta-
blished sawmills _________ 8 10 12 6.5
24.3 Sawing of Dimensional
Stock from Logs:
Includes machinery and
equipment installed in
sawmills characterized by
temporary foundations and
a lack, or minimum amount,
of lumber-handling,
drying, and residue dispo-
sal equipment and facili-
ties _____________________ 5 6 7 10
24.4 Manufacture of Wood
Products, and Furniture:
Includes assets used in
the production of plywood,
hardboard, flooring,
veneers, furniture, and
other wood products,
including the treatment
of poles and timber ______ 8 10 12 6.5
26.1 Manufacture of Pulp and
Paper:
Includes assets for pulp
materials handling and
storage, pulp mill pro-
cessing, bleach proces-
sing, paper and paper-
board manufacturing, and
on-line finishing.
Includes pollution
control assets and all
land improvements as-
sociated with the fac-
tory site or production
process such as effluent
ponds and canals, provi-
ded such improvements are
depreciable but does not
include buildings and
structural components as
defined in section
1.48-1(e)(1) of the
regulations. Includes
steam and chemical reco-
very boiler systems, with
any rated capacity, used
for the recovery and re-
generation of chemicals
used in manufacturing.
Does not include assets
used either in pulpwood
logging, or in the manu-
facture of hardboard _____ 10.5 13 15.5 10
26.2 Manufacture of Converted
Paper, Paperboard, and
Pulp Products:
Includes assets used for
modification, or remanu-
facture of paper and pulp
into converted products,
such as paper coated off
the paper machine, paper
bags, paper boxes, cartons
and envelopes. Does not
include assets used for
manufacture of non-wovens
that are elsewhere
classified _______________ 8 10 12 15
27.0 Printing, Publishing, and
Allied Industries:
Includes assets used in
printing by one or more
processes, such as letter-
press, lithography,
gravure, or screen; the
performance of services
for the printing trade,
such as book-binding,
typesetting, engraving,
photo-engraving, and
electrotyping; and the
publication of newspapers,
books, and periodicals ___ 9 11 13 5.5
28.0 Manufacture of Chemicals
and Allied Products:
Includes assets used in
the manufacture of basic
chemicals such as acids,
alkalies, salts, and or-
ganic and inorganic che-
micals; chemical products
to be used in further ma-
nufacture, such as syn-
thetic fibers and plastics
materials, including pe-
trochemical processing
beyond that which is ordi-
narily a part of petroleum
refining; and finished
chemical products, such as
pharmaceuticals, cosme-
tics, soaps, fertilizers,
paints and varnishes, ex-
plosives, and compressed
and liquified gases. Does
not include assets used
in the manufacture of
finished rubber and
plastic products or in
the production of natural
gas products, butane,
propane, and byproducts
of natural gas production
plants ___________________ 9 11 13 5.5
30.1 Manufacture of Rubber
Products:
Includes assets used for
the production of products
from natural, synthetic,
or reclaimed rubber, gutta
percha, balata, or gutta
siak, such as tires,
tubes, rubber footwear,
mechanical rubber goods,
heels and soles, flooring,
and rubber sundries; and
in the recapping, re-
treading, and rebuilding
of tires _________________ 11 14 17 5
30.11 Manufacture of Rubber
Products--Special Tools
and Devices:
Includes assets defined
as special tools, such as
jigs, dies, mandrels,
molds, lasts, patterns,
specialty containers,
pallets, shells, and tire
molds, and accessory parts
such as rings and insert
plates used in activities
as defined in class 30.1.
Does not include tire
building drums and acces-
sory parts and general
purpose small tools such
as wrenches and drills,
both power and hand-
driven, and other general
purpose equipment such as
conveyors and transfer
equipment ________________ 3 4 5
30.2 Manufacture of Finished
Plastic Products:
Includes assets used in
the manufacture of
plastics products and
the molding of primary
plastics for the trade.
Does not include assets
used in the manufacture
of basic plastics ma-
terials nor the manu-
facture of phonograph
records __________________ 9 11 13 5.5
30.21 Manufacture of Finished
Plastic Products--Special
Tools:
Includes assets defined
as special tools, such
as jigs, dies, fixtures,
molds, patterns, gauges,
and specialty transfer
and shipping devices,
used in activities as
defined in class 30.2.
Special tools are spe-
cifically designed for
the production or pro-
cessing of particular
parts and have no sig-
nificant utilitarian
value and cannot be
adapted to further or
different use after
changes or improvements
are made in the model
design of the particular
part produced by the
special tools. Does not
include general purpose
small tools, such as
wrenches and drills, both
hand and power-driven,
and other general purpose
equipment such as conve-
yors, transfer equipment,
and materials handling
devices __________________ 3 3.5 4 5.5
31.0 Manufacture of Leather and
Leather Products:
Includes assets used in
the tanning, currying, and
finishing of hides and
skins; the processing of
fur pelts; and the manu-
facture of finished
leather products, such
as footwear, belting,
apparel, and luggage _____ 9 11 13 5.5
32.1 Manufacture of Glass
Products:
Includes assets used in
the production of flat,
blown, or pressed products
of glass, such as float
and window glass, glass
containers, glassware and
fiberglass. Does not in-
clude assets used in the
manufacture of lenses ____ 11 14 17 12
32.11 Manufacture of Glass
Products--Special
Tools:
Includes assets defined as
special tools such as
molds, patterns, pallets,
and specialty transfer
and shipping devices such
as steel racks to
transport automotive
glass, used in activities
as defined in class 32.1.
Special tools are specifi-
cally designed for the
production or processing
of particular parts and
have no significant uti-
litarian value and cannot
be adapted to further or
different use after
changes or improvements
are made in the model
design of the particular
part produced by the
special tools. Does not
include general purpose
small tools such as
wrenches and drills, both
hand and power-driven, and
other general purpose
equipment such as con-
veyors, transfer equipment,
and materials handling
devices __________________ 2 2.5 3 10
32.2 Manufacture of Cement:
Includes assets used in
the production of cement,
but does not include any
assets used in the manufac-
ture of concrete and
concrete products nor in
any mining or extraction
process __________________ 16 20 24 3
32.3 Manufacture of Other
Stone and Clay Products:
Includes assets used in
the manufacture of
products from materials
in the form of clay and
stone, such as brick,
tile, and pipe; pottery
and related products,
such as vitreous-china,
plumbing fixtures,
earthenware and ceramic
insulating materials; and
also includes assets used
in manufacture of concrete
and concrete products.
Does not include assets
used in any mining or
extraction processes _____ 12 15 18 4.5
33.1 Manufacture of Primary
Ferrous Metals:
Includes assets used in
the smelting and refining
of ferrous metals from
ore, pig, or scrap, the
rolling, drawing, and
alloying of ferrous
metals; the manufacture
of castings, forgings,
and other basic products
of ferrous metals; and
the manufacture of nails,
spikes, structural shapes,
tubing, wire, and cable __ 14.5 18 21.5 8
33.11 Manufacture of Primary
Ferrous Metals--Special
Tools:
Includes assets defined as
special tools such as
dies, jigs, molds,
patterns, fixtures,
gauges, and drawings con-
cerning such special tools
used in the activities as
defined in class 33.1,
manufacture of Primary
Ferrous Metals. Special
tools are specifically
designed for the produc-
tion or processing of
particular products or
parts and have no signi-
ficant utilitarian value
and cannot be adapted to
further or different use
after changes or improve-
ments are made in the
model design of the
particular part produced
by the special tools.
Does not include general
purpose small tools such
as wrenches and drills,
both hand and power-
driven, and other general
purpose equipment such as
conveyors, transfer equip-
ment, and materials
handling devices. Rolls,
mandrels, and refractories
are not included in class
33.11 but are included in
class 33.1 _______________ 5 6.5 8 4
33.2 Manufacture of Primary
Nonferrous Metals:
Includes assets used in
the smelting, refining,
and electrolysis of non-
ferrous metals from ore,
pig, or scrap, the
rolling, drawing, and
alloying of nonferrous
metals; the manufacture of
castings, forgings, and
other basic products of
nonferrous metals; and
the manufacture of nails,
spikes, structural shapes,
tubing, wire, and cable __ 11 14 17 4.5
33.21 Manufacture of Primary
Nonferrous Metals--
Special Tools:
Includes assets defined as
special tools such as
dies, jigs, molds,
patterns, fixtures,
gauges, and drawings con-
cerning such special tools
used in the activities as
defined in class 33.2,
Manufacture of Primary
Nonferrous Metals. Special
tools are specifically de-
signed for the production
or processing of parti-
cular products or parts
and have no significant
utilitarian value and
cannot be adapted to
further or different use
after changes or improve-
ments are made in the
model design of the parti-
cular part produced by the
special tools. Does not
include general purpose
small tools such as
wrenches and drills, both
hand and powerdriven, and
other general purpose
equipment such as conve-
yors, transfer equipment,
and materials handling
devices.
Rolls, mandrels, and
refractories are not
included in class 33.21
but are included in
class 33.2 _______________ 5 6.5 8 4
34.0 Manufacture of Fabricated
Metal Products:
Includes assets used in the
production of metal cans,
tinware, nonelectric
heating apparatus, fabri-
cated structural metal
products, metal stampings,
and other ferrous and non-
ferrous metal and wire
products not elsewhere
classified _______________ 9.5 12 14.5 6
34.01 Manufacture of Fabricated
Metal Products--Special
Tools:
Includes assets defined
as special tools such as
dies, jigs, molds,
patterns, fixtures,
gauges, and returnable
containers and drawings
concerning such special
tools used in the activi-
ties as defined in class
34.0. Special tools are
specifically designed for
the production or pro-
cessing of particular
machine components,
products, or parts, and
have no significant
utilitarian value and
cannot be adapted to
further or different use
after changes or impro-
ments are made in the
model design of the parti-
cular part produced by the
special tools. Does not
include general purpose
small tools such as
wrenches and drills, both
hand and power-driven,
and other general purpose
equipment such as conve-
yors, transfer equipment,
and materials handling
devices __________________ 2.5 3 3.5 3.5
35.1 Manufacture of Metal-
working Machinery:
Includes assets used in
the production of metal
cutting and forming
machines, special dies,
tools, jigs, and fixtures,
and machine tool accesso-
ries _____________________ 9.5 12 14.5 5.5
35.11 Manufacture of Metal-
working Machinery--
Special Tools:
Includes assets defined as
special tools, such as
jigs, dies, fixtures,
molds, patterns, gauges,
and specialty transfer
and shipping devices, used
in activities as defined
in class 35.1. Special
tools are specifically
designed for the produc-
tion or processing of
particular machine compo-
nents and have no signi-
ficant utilitarian value
and cannot be adapted to
further or different use
after changes or improve-
ments are made in the
model design of the parti-
cular part produced by
the special tools. Does
not include general
purpose small tools such
as wrenches and drills,
both hand and power-
driven, and other general
purpose equipment such as
conveyors, transfer equip-
ment, and materials
handling devices _________ 5 6 7 12.5
35.2 Manufacture of Other
Machines:
Includes assets used in
the production of such
machinery as engines and
turbines; farm machinery,
construction, and mining
machinery; general and
special industrial
machines including office
machines and nonelec-
tronic computing equip-
ment; miscellaneous
machines except electri-
cal equipment and trans-
portation equipment ______ 9.5 12 14.5 5.5
35.21 Manufacture of Other
Machines--Special Tools:
Includes assets defined as
special tools, such as
jigs, dies, fixtures,
molds, patterns, gauges,
and specialty transfer and
shipping devices, used in
activities as defined in
class 35.2. Special tools
are specifically designed
for the production or pro-
cessing of particular
machine components and
have no significant
utilitarian value and
cannot be adapted to
further or different use
after changes or improve-
ments are made in the
model design of the parti-
cular part produced by
the special tools. Does
not include general
purpose small tools such
as wrenches and drills,
both hand and power-
driven, and other general
purpose equipment such as
conveyors, transfer equip-
ment, and materials
handling devices _________ 5 6.5 8 12.5
36.1 Manufacture of Electrical
Equipment:
Includes assets used in
the production of machine-
ry, apparatus, and
supplies for the genera-
tion, storage, transmis-
sion, transformation, and
utilization of electrical
energy such as; electric
test and distributing
equipment, electrical
industrial apparatus,
household appliances,
electric lighting and
wiring equipment; electro-
nic components and
accessories, phonograph
records, storage batteries
and ignition systems _____ 9.5 12 14.5 5.5
36.11 Manufacture of Elec-
trical Equipment Spe-
cial Tools:
Includes assets defined as
special tools such as
jigs, dies, molds,
patterns, fixtures,
gauges, returnable con-
tainers, and specialty
transfer devices used in
activities as defined in
class 36.1. Special tools
are specifically designed
for the production or
processing of particular
machine components,
products or parts, and
have no significant
utilitarian value and
cannot be adapted to
further or different use
after changes or improve-
ments are made in the
model design of the parti-
cular part produced by the
special tools. Does not
include general purpose
small tools such as
wrenches and drills,
both hand and power-
driven, and other ge-
neral purpose equipment
such as conveyors,
transfer equipment, and
materials handling
devices __________________ 4 5 6
36.2 Manufacture of Electronic
Products:
Includes assets used in
the production of elec-
tronic detection,
guidance, control, radia-
tion, computation, test,
and navigation equipment
or the components thereof
including airborne appli-
cation. Also includes
assets used in the manu-
facture of electronic air-
borne communication equip-
ment or the components
thereof. Does not include
the assets of manufactu-
rers engaged only in the
purchase and assembly of
components _______________ 6.5 8 9.5 7.5
37.11 Manufacture of Motor
Vehicles:
Includes assets used in
the manufacture and
assembly of finished
automobiles, trucks,
trailers, motor homes,
and buses. Does not
include assets used
in mining, printing and
publishing, production of
primary metals, electri-
city, or steam, or the
manufacture of glass,
industrial chemicals,
batteries, or rubber pro-
ducts, which are classi-
fied elsewhere. Includes
assets used in manufactu-
ring activities elsewhere
classified other than
those excluded above,
where such activities are
incidental to and an
integral part of the
manufacture and assembly
of finished motor vehicles
such as the manufacture
of parts and subassemblies
of fabricated metal pro-
ducts, electrical equip-
ment, textiles, plastics,
leather, and foundry and
forging operations. Does
not include any assets not
classified in manufactu
ring activity classes,
e.g., does not include
assets classified in asset
guideline classes 00.11
through 00.4. Activities
will be considered inci-
dental to the manufacture
and assembly of finished
motor vehicles only if 75
percent or more of the
value of the products
produced under one roof
are used for the manufac-
ture and assembly of
finished motor vehicles.
Parts that are produced
as a normal replacement
stock complement in
connection with the manu-
facture and assembly of
finished motor vehicles
are considered used for
the manufacture and
assembly of finished motor
vehicles. Does not include
assets used in the manu-
facture of component parts
if these assets are used
by taxpayer not engaged
in the assembly of
finished motor vehicles __ 9.5 12 14.5 9.5
37.12 Manufacture of Motor
Vehicles--Special Tools:
Includes assets defined as
special tools, such as
jigs, dies, fixtures,
molds, patterns, gauges,
and specialty transfer and
shipping devices, owned by
manufacturers of finished
motor vehicles and used in
qualified activities as
defined in class 37.11.
Special tools are speci-
fically designed for the
production or processing
of particular motor vehi-
cle components and have
no significant utilita-
rian value, and cannot
be adapted to further or
different use, after
changes or improvements
are made in the model
design of the particular
part produced by the spe-
cial tools. Does not
include general purpose
small tools such as
wrenches and drills,
both hand and power-
driven, and other general
purpose equipment such as
conveyors, transfer
equipment, and materials
handling devices _________ 2.5 3 3.5 12.5
37.2 Manufacture of Aerospace
Products:
Includes assets used in
the manufacture and
assembly of airborne
vehicles and their compo-
nent parts including
hydraulic, pneumatic,
electrical, and mechanical
systems. Does not include
assets used in the pro-
duction of electronic
airborne detection,
guidance, control, ra-
diation, computation,
test, navigation, and com-
munication equipment or
the components thereof ___ 8 10 12 7.5
37.31 Ship and Boat Building
Machinery and Equipment:
Includes assets used in
the manufacture and repair
of ships, boats, caissons,
marine drilling rigs, and
special fabrications not
included in asset guide-
line classes 37.32 and
37.33. Specifically
includes all manufacturing
and repairing machinery
and equipment, including
machinery and equipment
used in the operation of
assets included in asset
guideline class 37.32.
Excludes buildings and
their structural compo-
nents ____________________ 9.5 12 14.5 8.5
37.32 Ship and Boat Building Dry
Docks and Land
Improvements:
Includes assets used in
the manufacture and repair
of ships, boats, caissons,
marine drilling rigs, and
special fabrications not
included in asset
guideline classes 37.31
and 37.33. Specifically
includes floating and
fixed dry docks, ship
basins, graving docks,
shipways, piers, and all
other land improvements
such as water, sewer, and
electric systems.
Excludes buildings and
their structural compo-
nents ____________________ 13 16 19 2.5
37.33 Ship and Boat Building--
Special Tools:
Includes assets defined
as special tools such as
jigs, molds, patterns,
fixtures, gauges, and
drawings concerning such
special tools used in the
activities defined in
classes 37.31 and 37.32.
Special tools are speci-
fically designed for the
production or processing
of particular machine
components, products, or
parts, and have no sig-
nificant utilitarian value
and cannot be adapted to
further or different use
after changes or improve-
ments are made in the
model design of the parti-
cular part produced by
the special tools. Does
not include general
purpose small tools such
as wrenches and drills,
both hand and power-
driven, and other general
purpose equipment such as
conveyors, transfer equip-
ment, and materials
handling devices _________ 5 6.5 8 0.5
37.41 Manufacture of Locomotives:
Includes assets used in
building or rebuilding
railroad locomotives
(including mining and
industrial locomotives).
Does not include assets
of railroad transportation
companies or assets of
companies which manu-
facture components of
locomotives but do not
manufacture finished
locomotives ______________ 9 11.5 14 7.5
37.42 Manufacture of Railroad
Cars:
Includes assets used in
building or rebuilding
railroad freight or pas-
sengers cars (including
rail transit cars). Does
not include assets of
railroad transportation
companies or assets of
companies which manufac-
ture components of
railroad cars but do not
manufacture finished
railroad cars ____________ 9.5 12 14.5 5.5
38.0 Manufacture of Profes-
sional, Scientific, and
Controlling Instruments:
Includes assets used in
the manufacture of mechan-
cal measuring, enginee-
ring, laboratory and
scientific research ins-
truments, optical instru-
ments and lenses; surgi-
cal, medical, and dental
instruments, equipment
and supplies; ophthalmic
goods, photographic equip-
ment and supplies; and
watches and clocks _______ 9.5 12 14.5 5.5
39.0 Manufacture of Athletic,
Jewelry and Other Goods:
Includes assets used in
the production of jewelry;
musical instruments; toys
and sporting goods; motion
picture and television
films and tapes; and pens,
pencils, office and art
supplies, brooms, brushes,
caskets, etc. ____________ 9.5 12 14.5 5.5
Railroad Transportation:
Classes with the prefix 40
include the assets iden-
tified below that are used
in the commercial and
contract carrying of
passengers and freight
by rail. Assets of elec-
trified railroads will be
classified in a manner
corresponding to that set
forth below for railroads
not independently operated
as electric lines.
Excludes the assets in-
cluded in classes with the
prefix beginning 00.1 and
00.2 above, and also ex-
cludes any nondepreciable
assets included in
Interstate Commerce
Commission accounts
enumerated for this
class.
40.1 Railroad Machinery and
Equipment:
Includes assets classi-
fied in the following
Interstate Commerce
Commission accounts:
Roadway Accounts:
(16) Station and
office buildings
(freight handling
machinery and
equipment only)
(25) TOFC/COFC
terminals (freight
handling machinery
and equipment only)
(26) Communication
systems
(27) Signals and
interlockers
(37) Roadway machines
(44) Shop machinery
Equipment Accounts:
(52) Locomotives
(53) Freight train
cars
(54) Passenger train
cars
(57) Work equipment 11 14 17 10.5
40.2 Railroad Structures and
Similar Improvements:
Includes assets classified
in the following Inter-
state Commerce Commission
road accounts:
(6) Bridges, trestles,
and culverts
(7) Elevated structures
(13) Fences, snowsheds,
and signs
(16) Station and office
buildings (stations and
other operating struc-
tures only)
(17) Roadway buildings
(18) Water stations
(19) Fuel stations
(20) Shops and engine-
houses
(25) TOFC/COFC terminals
(operating structures
only)
(31) Power transmission
systems
(35) Miscellaneous
structures
(39) Public improve-
ments construction _______ 24 30 36 5
40.3 Railroad Wharves and Docks
Includes assets classified
in the following Inter-
state Commerce accounts:
(23) Wharves and docks
(24) Coal and ore wharves 16 20 24 5.5
40.51 Railroad Hydraulic
Electric Generating
Equipment ________________ 40 50 60 1.5
40.52 Railroad Nuclear Electric
Generating Equipment _____ 16 20 24 3
40.53 Railroad Steam Electric
Generating Equipment _____ 22.5 28 33.5 2.5
40.54 Railroad Steam, Com-
pressed Air, and Other
Power Plant Equipment ____ 22.5 28 33.5 7.5
41.0 Motor Transport-
Passengers:
Includes assets used in
the urban and interurban
commercial and contract
carrying of passengers by
road, except the trans-
portation assets included
in classes with the pre-
fix 00.2 _________________ 6.5 8 9.5 11.5
42.0 Motor Transport-
Freight:
Includes assets used in
the commercial and
contract carrying of
freight by road, except
the transportation assets
included in classes with
the prefix 00.2 __________ 6.5 8 9.5 11
44.0 Water Transportation:
Includes assets used in
the commercial and
contract carrying of
freight and passengers by
water except the trans-
portation assets included
in classes with the
prefix 00.2. Includes all
related land improvements 16 20 24 8
45.0 Air Transport:
Includes assets (except
helicopters) used in
commercial and contract
carrying of passengers
and freight by air. For
purposes of section
1.167(a)-11(d)(2)(iv)(a)
of the regulations, ex-
penditures for "repair,
maintenance, rehabilita-
tion or improvement" shall
consist of direct main-
tenance expenses (irres-
pective of airworthiness
provisions or charges) as
defined by Civil Aeronau-
tics Board uniform
accounts 5200, maintenance
burden (exclusive of ex-
penses pertaining to
maintenance buildings and
improvements) as defined
by Civil Aeronautics Board
uniform accounts 5300, and
expenditures which are not
"excluded additions" as
defined by section
1.167(a)-11(d)(2)(vi) of
the regulations and which
would be charged to pro-
perty and equipment
accounts in the Civil
Aeronautics Board uniform
system of accounts _______ 9.5 12 14.5 15
45.1 Air Transport
(restricted)
Includes each asset
described in the des-
cription of class 45.0
which was held by the
taxpayer on April 15,
1976, or is acquired by
the taxpayer pursuant
to a contract which was,
on April 15, 1976, and
at all times thereafter,
binding on the taxpayer.
This criterion of classi-
fication based on binding
contract concept is to be
applied in the same manner
as under the general rules
expressed in section
49(b)(1), (4), (5), and
(8) of the Code __________ 5 6 7 15
46.0 Pipeline Transportation:
Includes assets used in
the private, commercial,
and contract carrying of
petroleum, gas, and other
products by means of pipes
and conveyors. The trunk
lines and related storage
facilities of integrated
petroleum and natural gas
producers are included in
this class. Excludes ini-
tial clearing and grading
land improvements as
specified in Rev. Rul.
72-403, 1972- 2 C.B. 102,
but includes all other
related land improvements 17.5 22 26.5 3
Telephone Communications:
Includes the assets iden-
tified below and that are
used in the provision of
commercial and contract
telephonic services such
as:
48.11 Telephone Central Office
Buildings:
Includes assets intended
to house central office
equipment, as defined in
Federal Communications
Commission Part 31 Account
No. 212 whether section
1245 or section 1250
property _________________ 36 45 54 1.5
48.12 Telephone Central
Office Equipment:
Includes central office
switching and related
equipment as defined in
Federal Communications
Commission Part 31 Account
No. 221 __________________ 16 20 24 6
48.13 Telephone Station
Equipment:
Includes such station
apparatus and connections
as teletypewriters, tele-
phones, booths, private
exchanges, and comparable
equipment as defined in
Federal Communications
Commission Part 31 Account
Nos. 231, 232, and 234 ___ 8 10 12 10
48.14 Telephone Distribution
Plant:
Includes such assets as
pole lines, cable, aerial
wire underground conduits,
and comparable equipment,
and related land improve-
ments as defined in
Federal Communications
Commission Part 31 Account
Nos. 241, 242.1, 242.2,
242.3, 242.4, 243,
and 244 __________________ 28 35 42 2
48.2 Radio and Television
Broadcastings:
Includes assets used in
radio and television
broadcasting, except
transmitting towers ______ 5 6 7 10
Telegraph, Ocean Cable,
and Satellite Communi-
cations (TOCSC)
Includes communications-
related assets used to
provide domestic and
international radio-
telegraph, wire-tele-
graph, ocean-cable, and
satellite communications
services; also includes
related land improvements.
48.31 TOCSC-Electric Power
Generating and Distri-
bution Systems:
Includes assets used in
the provision of electric
power by generation,
modulation, rectification,
channelization, control,
and distribution. Does not
include these assets when
they are installed on
customer's premises ______ 15 19 23
48.32 TOCSC-High Frequency
Radio and Microwave
Systems:
Includes assets such as
transmitters and re-
ceivers, antenna sup-
porting structures,
antennas, transmission
lines from equipment to
antenna, transmitter
cooling systems, and
control and amplifica-
tion equipment. Does not
include cable and long-
line systems _____________ 10.5 13 15.5
48.33 TOCSC-Cable and Long-line
Systems:
Includes assets such as
transmission lines, pole
lines, ocean cables,
buried cable and conduit,
repeaters, repeater
stations, and other
related assets. Does not
include high frequency
radio or microwave
systems __________________ 21 26.5 32
48.34 TOCSC-Central Office
Control Equipment:
Includes assets for
general control,
switching, and monito-
ring of communications
signals including
electromechanical
switching and channe-
ling apparatus, multi-
plexing equipment,
patching and monitoring
facilities, in-house
cabling, teleprinter
equipment, and associated
site improvements ________ 13 16.5 20
48.35 TOCSC-Computerized
Switching, Channeling,
and Associated Control
Equipment:
Includes central office
switching computers,
interfacing computers,
other associated spe-
cialized control equip-
ment, and site improve-
ments ____________________ 8.5 10.5 12.5
48.36 TOCSC-Satellite Ground
Segment Property:
Includes assets such as
fixed earth station
equipment, antennas,
satellite communications
equipment, and interface
equipment used in
satellite communications.
Does not include general
purpose equipment or
equipment used in
satellite space segment
property _________________ 8 10 12
48.37 TOCSC-Satellite Space
Segment Property:
Includes satellites and
equipment used for tele-
metry, tracking, control,
and monitoring when used
in satellite communica-
tions ____________________ 6.5 8 9.5
48.38 TOCSC-Equipment
Installed on Customer's
Premises:
Includes assets installed
on customer's premises,
such as computers, termi-
nal equipment, power
generation and distribu-
tion systems, private
switching center, tele-
printers, facsimile equip-
ment, and other associated
and related equipment ____ 8 10 12
48.39 TOCSC-Support and Service
Equipment:
Includes assets used to
support but not engage
in communications.
Includes store, ware-
house, and shop tools,
and test and labora-
tory assets ______________ 11 13.5 16
Cable Television
(CATV):
Includes communications-
related assets used to
provide cable television
(community antenna tele-
vision services). Does
not include assets used to
provide subscribers with
two-way communications
services.
48.41 CATV-Headend:
Includes assets such as
towers, antennas, pre-
amplifiers, converters,
modulation equipment, and
program non-duplication
systems. Does not include
headend buildings and
program origination
assets ___________________ 9 11 13 5
48.42 CATV-Subscriber Connec-
tion and Distribution
Systems:
Includes assets such as
trunk and feeder cable,
connecting hardware,
amplifiers, power equip-
ment, passive devices,
directional taps, pe-
destals, pressure taps,
drop cables, matching
transformers, multiple
set connector equipment,
and converters ___________ 8 10 12 5
48.43 CATV-Program Origination:
Includes assets such as
cameras, film chains,
video tape recorders,
lighting, and remote
location equipment ex-
cluding vehicles. Does
not include buildings and
their structural
components _______________ 7 9 11 9
48.44 CATV-Service and Test:
Includes assets such as
oscilloscopes, field
strength meters, spectrum
analyzers, and cable
testing equipment, but
does not include vehicles 7 8.5 10 2.5
48.45 CATV-Microwave Systems:
Includes assets such as
towers, antennas, trans-
mitting and receiving
equipment, and broad band
microwave assets if used
in the provision of cable
television services. Does
not include assets used
in the provision of
common carrier services __ 7.5 9.5 11.5 2
Electric, Gas, Water and
Steam, Utility Services:
Includes assets used in
the production, trans-
mission and distribution
of electricity, gas,
steam, or water for sale,
including related land
improvements.
49.11 Electric Utility Hydraulic
Production Plant:
Includes assets used in
the hydraulic power
production of electricity
for sale, including rela-
ted land improvements,
such as dams, flumes,
canals, and waterways ____ 40 50 60 1.5
49.12 Electric Utility Nuclear
Production Plant:
Includes assets used in
the nuclear power pro-
duction of electricity for
sale and related land
improvements. Does not
include nuclear fuel
assemblies _______________ 16 20 24 3
49.121 Electric Utility Nuclear
Fuel Assemblies:
Includes initial core and
replacement core nuclear
fuel assemblies (i.e. the
composite of fabricated
nuclear fuel and contai-
ner) when used in a
boiling water, pressurized
water, or high temperature
gas reactor used in the
production of electricity.
Does not include nuclear
fuel assemblies used in
breeder reactors _________ 4 5 6
49.13 Electric Utility Steam
Production Plant:
Includes assets used in
the steam power produc-
tion of electricity for
sale, combustion turbines
operated in a combined
cycle with a conventional
steam unit and related
land improvements ________ 22.5 28 33.5 5
49.14 Electric Utility
Transmission and
Distribution Plant:
Includes assets used in
the transmission and
distribution of elec-
tricity for sale and
related land improvements.
Excludes initial clearing
and grading land improve-
ments as specified in Rev.
Rul. 72-403, 1972-2 C.B.
102 ______________________ 24 30 36 4.5
49.15 Electric Utility
Combustion Turbine
Production Plant:
Includes assets used in
the production of elec-
tricity for sale by the
use of such prime movers
as jet engines, combus-
tion turbines, diesel
engines, gasoline engines,
and other internal com-
bustion engines, their
associated power turbines
and/or generators, and
related land improvements.
Does not include combus-
tion turbines operated in
a combined cycle with a
conventional steam unit __ 16 20 24 4
49.21 Gas Utility Distribution
Facilities:
Including gas water
heaters and gas con-
version equipment ins-
talled by utility on
customers' premises on
a rental basis ___________ 28 35 42 2
49.221 Gas Utility Manufactured
Gas Production Plants:
Includes assets used in
the manufacture of gas
having chemical and/or
physical properties which
do not permit complete
interchangeability with
domestic natural gas _____ 24 30 36 2
49.222 Gas Utility Substitute
Natural Gas (SNG) Pro-
duction Plant (naptha
or lighter hydrocarbon
feedstocks):
Includes assets used in
the catalytic conversion
of feedstocks of naphtha
or lighter hydrocarbons to
a gaseous fuel which is
completely interchangeable
with domestic natural gas 11 14 17 4.5
49.23 Natural Gas Production
Plant ____________________ 11 14 17 4.5
49.24 Gas Utility Trunk Pipe-
lines and Related
Storage Facilities:
Excludes initial
clearing and grading
land improvements as
specified in Rev. Rul.
72-403 _______________ 17.5 22 26.5 3
49.25 Liquefied Natural Gas
Plant:
Includes assets used in
the liquefaction, storage,
and regasification of
natural gas including
loading and unloading
connections, instrumenta-
tion equipment and
controls, pumps, vapo-
rizers and odorizers,
tanks, and related land
improve- ments. Also
includes pipeline inter-
connections with gas
transmission lines and
distribution systems and
marine terminal faci-
lities ___________________ 17.5 22 26.5 4.5
49.3 Water Utilities:
Includes assets used in
the gathering, treatment,
and commercial distribu-
tion of water ____________ 40 50 60 1.5
49.4 Central Steam Utility
Production and
Distribution:
Includes assets used in
the production and dis-
tribution of steam for
sale _____________________ 22.5 28 33.5 2.5
50.0 Wholesale and Retail
Trade:
Includes assets used in
carrying out the activi-
ties of purchasing,
assembling, storing,
sorting, grading, and
selling of goods at both
the wholesale and retail
level. Also includes
assets used in such acti-
vities as the operation
of restaurants, cafes,
coin-operated dispensing
machines, and in brokerage
of scrap metal ___________ 8 10 12 6.5
50.1 Wholesale and Retail
Trade Service Assets:
Includes assets such as
glassware, silverware
(including kitchen uten-
sils), crockery (usually
china) and linens (gene-
rally napkins, tablecloths
and towels) used in
qualified activities as
defined in class _________ 50.0 2 2.5 3
70.2 Personal and Professional
Services:
Includes assets used in
the provision of personal
services such as those
offered by hotels and
motels, laundry and dry
cleaning establishments,
beauty and barber shops,
photographic studios and
mortuaries. Includes
assets used in the provi-
sion of professional
services such as those
offered by doctors,
dentists, lawyers,
accountants, architects,
engineers, and veterina-
rians. Includes assets
used in the provision of
repair and maintenance
services and those assets
used in providing fire
and burglary protection
services. Includes equip-
ment or facilities used
by cemetery organiza-
tions, news agencies,
teletype wire services,
frozen food lockers, and
research laboratories ____ 8 10 12 6.5
70.21 Personal and Professional
Services Service Assets:
Includes assets such as
glassware, silverware,
crockery, and linens
(generally sheets,
pilowcases and bath
towels) used in
qualified activities
as defined in class ______ 70.2 2 2.5 3
79.0 Recreation:
Includes assets used in
the provision of enter-
tainment services on
payment of a fee or
admission charge, as in
the operation of bowling
alleys, billiard and pool
establishments, theaters,
concert halls, and
miniature golf courses.
Does not include amusement
and theme parks and assets
which consist primarily
of specialized land im-
provements or structures,
such as golf courses,
sports stadia, race
tracks, ski slopes, and
buildings which house the
assets used in entertain-
ment services ____________ 8 10 12 6.5
80.0 Theme and Amusement Parks:
Includes assets used in
the provision of rides,
attractions, and amuse-
ments in activities
defined as theme and
amusement parks, and
includes appurtenances
associated with a ride,
attraction, amusement
or theme setting within
the park such as ticket
booths, facades, shop
interiors, and props,
special purpose struc-
tures, and buildings
other than warehouses
administration buildings,
hotels, and motels.
Includes all land
improvements for or in
support of park
activities, (e.g.
parking lots, sidewalks,
waterways, bridges,
fences, landscaping, etc.)
and support functions
(e.g. food and beverage
retailing, souvenir
vending and other non-
lodging accommodations)
if owned by the park and
provided exclusively for
the benefit of park
patrons. Theme and amuse-
ment parks are defined as
combinations of amusements,
rides, and attractions
which are permanently
situated on park land and
open to the public for
the price of admission.
This guideline class is
a composite of all assets
used in this industry
except transportation
equipment (general purpose
trucks, cars, airplanes,
etc., which are included
in asset guideline classes
with the prefix 00.2),
assets used in the pro-
vision of administrative
services (asset guideline
classes with the prefix
00.1), and warehouses,
administration buildings,
hotels and motels ________ 10 12.5 15 12.5
Sec. 4. Effect on Other Documents.
Rev. Procs. 72-10, 73-2, 73-3, 73-23, 73-24, 73-25, 73-26, 73-27, 73-28, 73-30, 74-27, 74-28, 74-29, 74-30, 74-31, 74-32, 74-37, 74-50, 76-16, 76-17, 76-18, 76-27, 76-37, 77-2, 77-3 and 77-8 are superseded for property placed in service in taxable years ending on or after March 21, 1977, the date of publication of this Revenue Procedure in the Internal Revenue Bulletin, in accordance with section 1.167(a)-11(b)(4) of the regulations. However, the taxpayer may at his option apply Rev. Proc. 72-10, as previously modified by the aforementioned documents, without regard to this Revenue Procedure for such property placed in service in a taxable year beginning before March 21, 1977, and ending on or after that date. Such option shall be exercised in making the election to apply section 1.167(a)-11 for such year and may not be revoked after the latest time for making such election.
The asset guideline classes, asset guideline depreciation periods and ranges, and asset guideline repair allowance percentages set forth in this Revenue Procedure will from time to time be supplemented and revised as provided by section 1.167(a)-11(b)(4) of the regulations. Taxpayers using this Revenue Procedure should apply it as supplemented and revised.
DOCUMENT ATTRIBUTES
- Cross-Reference
26 CFR 601.105: Examination of returns and claims for refund, credit,
or abatement; determination of correct tax liability.
(Also Part I, Section 167; 1.167(a)-11.)
- Code Sections
- LanguageEnglish
- Tax Analysts Electronic Citationnot available
