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Rev. Proc. 77-10


Rev. Proc. 77-10; 1977-1 C.B. 548

DATED
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
  • Language
    English
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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Superseded by Rev.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

Rev. Proc. 77-10

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
  • Language
    English
  • Tax Analysts Electronic Citation
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