Rev. Proc. 76-17
Rev. Proc. 76-17; 1976-1 C.B. 557
- 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
Superseded by Rev. Proc. 77-10
Section 1. Purpose.
The purpose of this Revenue Procedure is to prescribe under section 1.167(a)-11 of the Income Tax Regulations revised and supplementary asset guideline classes for the manufacture of textile mill products, and to prescribe asset guideline depreciation periods and ranges and annual asset guideline repair allowance percentages for these classes.
The revised and supplementary guideline classes, asset guideline depreciation periods and ranges, and annual asset guideline repair allowance percentages are set forth in Section 2 of this Revenue Procedure.
Sec. 2. Asset Guideline Classes and Periods, Asset Depreciation Ranges, and Annual Asset Guideline Repair Allowance Percentages for Assets Used In the Manufacture of Textile Products.
The asset guideline classes, asset guideline depreciation periods and ranges, and annual asset guideline repair allowance percentages are prescribed as set forth below.
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Asset Depreciation
Range (in years) Annual
------------------- Asset
Asset Asset Guideline
Guide- Guide- Repair
line Description of Assets Lower line Upper Allowance
Class Included Limit Period Limit Percentage
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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, dyeing,
printing, and other
similar finishing
processes, texturing, and
packaging are elsewhere
classified _________________ 6.0 7.5 9.0 7.0
22.2 Manufacture of Yarn,
Thread, and Woven
Fabric:
Includes assets
used in the production
of spun yarns including
the preparing, blending,
spinning, and twisting,
of fibers into yarns and
threads, the preparation
of yarns such as
twisting, 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
shoddies. Assets used to
manufacture carpets, man
made fibers, and
nonwovens, and assets used
in texturing, bleaching,
dyeing, printing, and
other similar finishing
processes, are elsewhere
classified _______________ 9.0 11.0 13.0 16.0
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
baking 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 textile goods.
Includes assets used in
the production 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
together processes (other
than the production of
scrim reinforced paper
products and laminated
paper products) 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 manufacture
of nonwoven carpet
backing, and hard surface
floor covering such as
tile, rubber, and cork,
are elsewhere classified _____ 7.0 9.0 11.0 15.0
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
similar finishing
processes, are elsewhere
classified _________________ 6.5 8.0 9.5 7.0
22.5 Manufacture of Nonwoven
Fabrics:
Includes assets used in
the production of nonwoven
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
products) manufactured by
bonding natural and/or
synthetic fibers and/or
filaments by means of
induced mechanical
interlocking, fluid
entanglement, chemical
adhesion, thermal or
solvent reaction, or by
combination thereof other
than natural hydration
bonding as occurs with
natural cellulose fibers.
Such means include resin
bonding, web bonding, and
melt bonding. Specifically
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
processes, are elsewhere
classified ________________ 8.0 10.0 12.0 15.0
Sec. 3. Effect On Other Documents.
Rev. Proc. 72-10, 1972-1 C.B. 721, and Rev. Proc. 73-26, 1973-2 C.B. 479, are modified by the elimination of title 22.0, Manufacture of Textile Mill Products, and the prescription of revised and supplementary guideline classes 22.1, Manufacture of Knitted Goods; 22.2, Manufacture of Yarn, Thread, and Woven Fabric; 22.3, Manufacture of Carpets, and Dyeing, Finishing, and Packaging of Textile Products; 22.4, Manufacture of Textile Yarns; and 22.5 Manufacture of Nonwoven Fabrics, with prescribed asset guideline depreciation periods and ranges, and annual asset guideline repair allowance percentages as set forth in Section 2 of this Revenue Procedure.
Sec. 4. Effective Date.
The asset guideline classes, asset guideline depreciation periods and ranges, and annual asset guideline repair allowance percentages for the activity classes set forth in this Revenue Procedure are effective for property first placed in service after December 31, 1975.
1 Also released as IR-1578, dated March 24, 1976.
- 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
