Rev. Proc. 83-35
Rev. Proc. 83-35; 1983-1 C.B. 745
DOCUMENT ATTRIBUTES
- Cross-Reference
26 CFR 601.105: Examination of returns and claims for refund
credit, or abatement; determination of correct tax liability.
(Also Part I, Section 167; 1.167(a)-11.)
- Code Sections
- LanguageEnglish
- Tax Analysts Electronic Citationnot available
Citations: Rev. Proc. 83-35; 1983-1 C.B. 745
Obsoleted in part by Rev. Proc. 87-56
Section 1. Purpose
.01 The purpose of this Revenue Procedure is to restate, pursuant to section 167(m) 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. For purposes of defining the classes of recovery property under the Accelerated Cost Recovery System (ACRS), section 168(c)(2) of the Code makes reference to the present class life for the property. The present class life is the asset guideline period (midpoint class life) established for the class as of December 31, 1980, except for asset guideline class 48.12. Asset guideline class 48.12 is effective on January 1, 1981. See section 168(g)(2) of the Code.
.02 The Class Life Asset Depreciation Range (CLADR) System cannot be elected for recovery property (within the meaning of section 168 of the Code) placed in service after December 31, 1980. See section 167(m)(4) of the Code, which was added by the Economic Recovery Tax Act of 1981 (H.R. 4242, 97th Congress; Public Law 97-34). In addition, Public Law 97-34 repealed section 263(e), Reasonable Repair Allowance, for property placed in service after December 31, 1980.
.03 This Revenue Procedure supersedes Rev. Proc. 77-10, 1977-1 C.B. 548, and the supplements and revisions of the asset guideline classes, periods, and repair allowance percentages published since the publication of Rev. Proc. 77-10. These Revenue Procedures are as follows:
77-14, 1977-1 C.B. 571
78-4, 1978-1 C.B. 555
78-5, 1978-1 C.B. 557
79-26, 1979-1 C.B. 566
79-35, 1979-2 C.B. 498
79-41, 1979-2 C.B. 506
79-42, 1979-2 C.B. 507
79-60, 1979-2 C.B. 574
79-64, 1979-2 C.B. 579
79-65, 1979-2 C.B. 579
80-15, 1980-1 C.B. 618
80-33, 1980-2 C.B. 768
80-58, 1980-2 C.B. 854
82-67, 1982-2 C.B. 853
Sec. 2. Rule of Application
.01 The asset guideline classes, asset guideline periods and ranges, and annual asset guideline repair allowance 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, 33.21, 34.01, 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 sections 1.167(a)-11(b)(4)(ii) and 1.167(a)-11(b)(5)(v) of the Income Tax Regulations.
(ii) 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.
(iii) 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.
(iv) 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 as-
Asset --------------------- set guide-
guide- Asset line repair
line Description of assets Lower guideline Upper allowance
class included limit period limit percentage
-----------------------------------------------------------------
SPECIFIC DEPRECIABLE ASSETS USED IN ALL BUSINESS ACTIVITIES, EXCEPT
AS NOTED:
00.11 Office Furniture, Fix-
tures, and Equipment:
Includes furniture and
fixtures that are not a
structural component of
a building. Includes
such assets as desks,
files, safes, and com-
munications equipment.
Does not include com-
munications equipment
that is included in
other CLADR classes ____ 8 10 12 2
00.12 Information Systems:
Includes computers
and their peripheral
equipment used in
administering normal
business transac-
tions and the main-
tenance of business
records, their re-
trieval and analysis.
Information systems
are defined as:
1) Computers: A com-
puter is an electroni-
cally activated device
capable of accepting
information, applying
prescribed processes
to the information,
and supplying the re-
sults of these pro-
cesses with or without
human intervention. It
usually consists of a
central processing unit
containing extensive
storage, logic, arith-
metic, and control ca-
pabilities. Excluded
from this category are
adding machines, elec-
tronic desk calculators,
etc.
2) Peripheral equipment
consists of the auxi-
liary machines that may
be placed under control
of the central processing
unit. Nonlimiting exam-
ples are: Card readers,
card punches, magnetic
tape feeds, high speed
printers, optical cha-
racter readers, tape
cassettes, mass storage
units, paper tape equip-
ment, keypunches, data
entry devices, teleprin-
ters, 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 that is
included in other CLADR
classes of economic ac-
tivity, i.e., computers
used primarily for pro-
cess or production con-
trol, switching, chan-
neling, and automating
distributive trades and
services such as point
of sale (POS) computer
systems ________________ 5 6 7 7.5
00.13 Data Handling Equip-
ment, except Computers:
Includes only typewri-
ters, calculators,
adding and accounting
machines, copiers, and
duplicating equipment __ 5 6 7 15
00.21 Airplanes (airframes
and engines), except
those used in commer-
cial 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, con-
crete ready mix-tru-
ckers, 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 trans-
portation companies ____ 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 Trans-
portation Equipment,
except those used in
marine construction ____ 14.5 18 21.5 6
00.3 Land Improvements:
Includes improvements
directly to or added to
land, whether such im-
provements are section
1245 property or section
1250 proper ty, provided
such improvements are de-
preciable. Examples of
such assets might include
sidewalks, roads, canals,
waterways, drainage faci-
lities, sewers, wharves
and docks, bridges, fen-
ces, landscaping, shrub-
bery, or radio and tele-
vision transmitting to-
wers. 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. Ex-
cludes public utility
initial clearing and
grading land improve-
ments 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, whe-
ther such assets are
section 1245 property
or 1250 property, pro-
viding such assets are
depreciable, used in
the production and/or
distribution of elec-
tricity with rated total
capacity in excess of
500 Kilowatts and/or
assets used in the pro-
duction and/or distri-
bution of steam with
rated total capacity in
excess of 12,500 pounds
per hour for use by the
taxpayer in its indus-
trial manufacturing pro-
cess or plant activity
and not ordinarily avai-
lable for sale to
others. Does not include
buildings and structural
components as defined
in section 1.48-1(e) of
the regulations. Assets
used to generate and/or
distribute electricity
or steam of the type
described above but of
lesser rated capacity
are not included, but
are included in the ap-
propriate manufacturing
equipment classes else-
where specified. Also
includes electric gene-
rating and steam distri-
bution assets, which may
utilize steam produced
by a waste reduction and
resource recovery plant,
used by the taxpayer in
its industrial manufac-
turing process or plant
activity. Steam and che-
mical recovery boiler
systems used for the
recovery and regenera-
tion of chemicals used
in manufacturing, with
rated capacity in ex-
cess of that described
above, with specifical-
ly related distribution
and return systems are
not included but are in-
cluded in appropriate
manufacturing equipment
classes elsewhere speci-
fied. An example of an
excluded steam and chemi-
cal recovery boiler sys-
tem is that used in the
pulp and paper manufac-
turing industry ________ 17.5 22 26.5 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; live-
stock; the operation of
farm dairies, nurseries,
greenhouses, sod farms,
mushroom cellars, cran-
berry bogs, apiaries,
and fur farms; the per-
formance of agriculture,
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 nonme-
tallic minerals (inclu-
ding sand, gravel,
stone, and clay) and
the milling, beneficia-
tion and other primary
preparation of such ma-
terials ________________ 8 10 12 6.5
13.0 Offshore Drilling:
Includes assets used in
offshore drilling for
oil and gas such as
floating, self-pro-
pelled and other dril-
ling vessels, barges,
platforms, and dril-
ling equipment and sup-
port vessels such as
tenders, barges, tow-
boats and crew boats.
Excludes oil and gas
production assets ______ 6 7.5 9 3
13.1 Drilling of Oil and
Gas Wells:
Includes assets used in
the drilling of onshore
oil and gas wells and
the provision of geophy-
sical and other explora-
tion services; and the
provision of such oil
and gas field services
as chemical treatment,
plugging and abandoning
of wells and cementing
or perforating well ca-
sings. Does not include
assets used in the per-
formance of any of
these activities and
services by integrated
petroleum and natural
gas producers for their
own account ____________ 5 6 7 10
13.2 Exploration for and
Production of Petroleum
and Natural Gas Deposits
Includes assets used by
petroleum and natural
gas producers for dril-
ling of wells and pro-
duction of petroleum
and natural gas, in-
cluding gathering pipe-
lines and related sto-
rage facilities. Also
includes petroleum and
natural gas offshore
transportation facili-
ties used by producers
and others consisting
of platforms (other than
drilling platforms
classified in Class
13.0), compression or
pumping equipment, and
gathering and trans-
mission lines to the
first onshore transship-
ment facility. The
assets used in the
first onshore transship-
ment facility are also
included and consist of
separation equipment
(used for separation
of natural gas, liquids,
and solids) compression
or pumping equipment
(other than equipment
classified in Class
49.23), and liquid hol-
ding or storage facili-
ties (other than those
classified in Class
49.25). Does not include
support vessels ________ 11 14 17 4.5
13.3 Petroleum Refining:
Includes assets used
for the distillation,
fractionation, and ca-
talytic cracking of
crude petroleum into
gasoline and its other
components _____________ 13 16 19 7
15.0 Construction:
Includes assets used in
construction by general
building, special trade,
heavy and marine cons-
truction contractors,
operative and invest-
ment builders, real es-
tate subdividers and
developers, and others
except railroads _______ 5 6 7 9
20.1 Manufacture of Grain
and Grain Mill Products:
Includes assets used in
the production of
flours, cereals, live-
stock 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 fi-
nished sugar from sugar
cane or sugar beets ____ 14.5 18 21.5 4.5
20.3 Manufacture of Vege-
table Oils and Vege-
table Oil Products:
Includes assets used in
the production of oil
from vegetable mate-
rials and the manufac-
ture of related vege-
table oil products _____ 14.5 18 21.5 3.5
20.4 Manufacture of Other
Food and Kindred Pro-
ducts:
Includes assets used
in the production of
foods and beverages
not included in clas-
ses 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 e-
quipment including
boxes, baskets, carts,
and flaking trays used
in activities as defined
in classes 20.1, 20.2,
20.3 and 20.4. Does not
include general purpose
small tools such as
wrenches and drills,
both hand and power-
driven, and other gene-
ral purpose equipment
such as conveyors,
transfer equipment,
and materials handling
devices ________________ 3 4 5 20
21.0 Manufacture of Tobacco
and Tobacco Products:
Includes assets used
in the production of
cigarettes, cigars, smo-
king and chewing toba-
cco, snuff, and other
tobacco products _______ 12 15 18 5
22.1 Manufacture of Knitted Goods:
Includes assets used in
the production of knit-
ted and netted fabrics
and lace. Assets used
in yarn preparation,
bleaching, dyeing, prin-
ting, and other similar
finishing processes,
texturing, and packa-
ging, 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 twisting,
warping, and winding,
the production of co-
vered elastic yarn and
thread, cordage, woven
fabric, tire fabric,
braided fabric, twisted
jute for packing, mat-
tresses, pads, sheets,
and industrial belts,
and the processing of
textile mill waste to
recover fibers, flocks,
and shoddies. Assets
used to manufacture
carpets, man-made fi-
bers, and nonwovens,
and assets used in tex-
turing, bleaching,
dyeing, printing, and
other similar finishing
processes, are else-
where classified _______ 9 11 13 16
22.3 Manufacture of Carpets,
and Dyeing, Finishing,
and Packaging of Tex-
tile Products and Manu-
facture of Medical and
Dental Supplies:
Includes assets used in
the production of car-
pets, rugs, mats, woven
carpet backing, che-
nille, and other tufted
products, and assets
used in the joining to-
gether of backing with
carpet yarn or fabric.
Includes assets used
in washing, scouring,
bleaching, dyeing, prin-
ting, drying, and simi-
lar finishing processes
applied to textile fa-
brics, yarns, threads,
and other textile goods.
Includes assets used in
the production and pa-
ckaging of textile pro-
ducts, other than appa-
rel, by creasing, for-
ming, trimming, cutting,
and sewing, such as the
preparation of carpet
and fabric samples, or
similar joining together
processes (other than
the production of scrim
reinforced paper pro-
ducts and laminated pa-
per products) such as
the sewing and folding
of hosiery and panty
hose, and the creasing,
folding, trimming, and
cutting of fabrics to
produce nonwoven pro-
ducts, such as dispo-
sable diapers and sani-
tary products. Also in-
cludes assets used in
the production of medi-
cal and dental supplies
other than drugs and
medicines. Assets used
in the manufacture 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 twis-
ters and winders. As-
sets, as described
above, which are used
to further process man-
made fibers are else-
where classified when
located in the same
plant in an integrated
operation with man-made
fiber producing assets.
Assets used to manufac-
ture man-made fibers and
assets used in blea-
ching, dyeing, printing,
and other similar fini-
shing processes, are
elsewhere classified ___ 6.5 8 9.5 7
22.5 Manufacture of Nonwoven
Fabrics:
Includes assets used in
the production of nonwo-
ven fabrics, felt goods
including felt hats,
padding, batting, wad-
ding, oakum, and fil-
lings, from new mate-
rials and from textile
mill waste. Nonwoven
fabrics are defined as
fabrics (other than
reinforced and lamina-
ted composites consis-
ting of nonwovens and
other products) manu-
factured by bonding na-
tural and/or synthetic
fibers and/or filaments
by means of induced me-
chanical interlocking,
fluid entanglement, che-
mical adhesion, thermal
or solvent reaction, or
by combination thereof
other than natural hydra-
tion bonding as occurs
with natural cellulose
fibers. Such means in-
clude resin bonding, web
bonding, and melt bon-
ding. Specifically in-
cludes 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 classi-
fied when located in
the same plant in an
integrated operation
with man-made fiber
producing assets.
Assets used to manufac-
ture man-made fibers
and assets used in blea-
ching, dyeing, printing,
and other similar fini-
shing processes, are
elsewhere classified ___ 8 10 12 15
23.0 Manufacture of Apparel
and Other Finished Pro-
ducts:
Includes assets used in
the production of clo-
thing and fabricated
textile products by
the cutting and sewing
of woven fabrics, other
textile products, and
furs; but does not in-
clude assets used in
the manufacture of appa-
rel from rubber and
leather ________________ 7 9 11 7
24.1 Cutting of Timber:
Includes logging machi-
nery and equipment and
roadbuilding equipment
used by logging and saw-
mill 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-es-
tablished sawmills _____ 8 10 12 6.5
24.3 Sawing of Dimensional
Stock from Logs:
Includes machinery and
equipment installed in
sawmills characterized
by temporary founda-
tions and a lack, or
minimum amount, of lum-
berhandling, drying,
and residue disposal
equipment and facili-
ties ___________________ 5 6 7 10
24.4 Manufacture of Wood
Products, and Furniture:
Includes assets used in
the production of ply-
wood, hardboard, floo-
ring, veneers, furni-
ture, and other wood pro-
ducts, 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
processing, bleach pro-
cessing, paper and paper-
board manufacturing, and
on-line finishing. In-
cludes pollution control
assets and all land im-
provements associated
with the factory site
or production process
such as effluent ponds
and canals, provided
such improvements are
depreciable but does
not include buildings
and structural compo-
nents as defined in
section 1.48-1(e)(1)
of the regulations.
Includes steam and che-
mical recovery boiler
systems, with any rated
capacity, used for the
recovery and regenera-
tion of chemicals used
in manufacturing. Does
not include assets used
either in pulpwood
logging, or in the ma-
nufacture 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 pro-
ducts, such as paper
coated off the paper
machine, paper bags,
paper boxes, cartons
and envelopes. Does not
include assets used for
manufacture of non-wo-
vens 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 let-
ter-press, lithography,
gravure, or screen; the
performance of services
for the printing trade,
such as bookbinding,
typesetting, engraving,
photo-engraving, and
electrotyping; and the
publication of newspa-
pers, books, and perio-
dicals _________________ 9 11 13 5.5
28.0 Manufacture of Chemicals
and Allied Products:
Includes assets used to
manufacture basic orga-
nic and inorganic chemi-
cals; chemical products
to be used in further
manufacture, such as
synthetic fibers and
plastics materials;
and finished chemical
products. Includes
assets used to further
process man-made fibers,
to manufacture plastic
film, and to manufacture
non-woven fabrics, when
such assets are located
in the same plant in an
integrated operation
with chemical products
producing assets. Also
includes assets used to
manufacture photogra-
phic supplies, such as
film, photographic pa-
per, sensitized photo-
graphic paper, and deve-
loping chemicals. In-
cludes all land improve-
ments associated with
plant site or production
processes, such as
effluent ponds and ca-
nals, provided such land
improvements are depre-
ciable but does not in-
clude buildings and
structural components
as defined in section
1.48-1(e) of the regu-
lations. Does not in-
clude assets used in the
manufacture of finished
rubber and plastic pro-
ducts or in the produc-
tion of natural gas pro-
ducts, butane, propane,
and by-products of natu-
ral gas production
plants _________________ 7.5 9.5 11.5 12.5
30.1 Manufacture of Rubber
Products:
Includes assets used for
the production of pro-
ducts from natural, syn-
thetic, or reclaimed
rubber, gutta percha,
balata, or gutta siak,
such as tires, tubes,
rubber footwear, mecha-
nical rubber goods,
heels and soles,
flooring, and rubber
sundries; and in the
recapping, retreading,
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 accesso-
ry parts such as rings
and insert plates used
in activities as defined
in class 30.1. Does not
include tire building
drums and accessory
parts and general pur-
pose small tools such
as wrenches and drills,
both power and hand-dri-
ven, and other general
purpose equipment such
as conveyors and trans-
fer equipment __________ 3 4 5
30.2 Manufacture of Finished
Plastic Products:
Includes assets used in
the manufacture of plas-
tics products and the
molding of primary plas-
tics for the trade. Does
not include assets used
in the manufacture of
basic plastics materials
nor the manufacture of
phonograph records _____ 9 11 13 5.5
30.21 Manufacture of Finished
Plastic Products--Spe-
cial 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 particu-
lar 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 gene-
ral purpose equipment
such as conveyors,
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 pro-
cessing of fur pelts;
and the manufacture
of finished leather
products, such as foot-
wear, 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 pro-
ducts of glass, such as
float and window glass,
glass containers, glass-
ware and fiberglass.
Does not include assets
used in the manufacture
of lenses ______________ 11 14 17 12
32.11 Manufacture of Glass
Products--Special Tools:
Includes assets de-
fined as special tools
such as molds, patterns,
pallets, and specialty
transfer and shipping
devices such as steel
racks to transport au-
tomotive glass, used in
activities as defined
in class 32.1. Special
tools are specifically
designed for the pro-
duction or processing
of particular 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 par-
ticular part produced
by the special tools.
Does not include gene-
ral purpose small tools
such as wrenches and
drills, both hand and
power-driven, and other
general purpose equip-
ment such as conveyors,
transfer equipment, and
materials handling de-
vices __________________ 2 2.5 3 10
32.2 Manufacture of Cement:
Includes assets used in
the production of ce-
ment, but does not in-
clude any assets used
in the manufacture 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 pro-
ducts 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, ear-
thenware and ceramic
insulating materials;
and also includes assets
used in manufacture of
concrete and concrete
products. Does not in-
clude assets used in
any mining or extraction
processes ______________ 12 15 18 4.5
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, structu-
ral 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
concerning such special
tools used in the acti-
vities as defined in
class 33.2, Manufacture
of Primary Nonferrous
Metals. Special tools
are specifically de-
signed for the produc-
tion or processing of
particular products or
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 wren-
ches and drills, both
hand and power-driven, and
other general purpose e-
quipment 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
33.3 Manufacture of Foundry
Products:
Includes assets used in
the casting of iron and
steel, including related
operations such as mol-
ding and coremaking.
Also includes assets
used in the finishing of
castings and pattern-
making when performed at
the foundry, all special
tools and related land
improvements ___________ 11 14 17 18
33.4 Manufacture of Primary
Steel Mill Products:
Includes assets used in
the smelting, reduction,
and refining of iron and
steel from ore, pig, or
scrap; the rolling,
drawing and alloying of
steel; the manufacture
of nails, spikes, struc-
tural shapes, tubing,
wire, and cable. In-
cludes assets used by
steel service centers,
ferrous metal forges,
and assets used in coke
production, regardless
of ownership. Also in-
cludes related land im-
provements and all
special tools used in
the above activities ___ 12 15 18 18
34.0 Manufacture of Fabricated
Metal Products:
Includes assets used in
the production of metal
cans, tinware, fabrica-
ted structural metal
products, metal stam-
pings, and other ferrous
and nonferrous metal and
wire products not else-
where classified. Does
not include assets used
to manufacture non-
electric heating appa-
ratus __________________ 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 acti-
vities as defined in
class 34.0. Special
tools are specifically
designed for the pro-
duction or processing of
particular machine compo-
nents, products, or
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 gene-
ral purpose equipment
such as conveyors,
transfer equipment,
and materials handling
devices ________________ 2.5 3 3.5 3.5
35.0 Manufacture of Electri-
cal and Non-Electrical
Machinery and Other Me-
chanical Products:
Includes assets used to
manufacture or rebuild
finished machinery and
equipment and replace-
ment parts thereof such
as machine tools, gene-
ral industrial and spe-
cial industry machinery,
electrical power genera-
tion, transmission, and
distribution systems,
space heating, cooling,
and refrigeration sys-
tems, commercial and
home appliances, farm
and garden machinery,
construction machinery,
mining and oil field ma-
chinery, internal com-
bustion engines (except
those elsewhere classi-
fied) turbines (except
those that power air-
borne vehicles), batte-
ries, lamps and lighting
fixtures, carbon and gra-
phite products, and elec-
tromechanical and mecha-
nical products including
business machines, ins-
truments, watches and
clocks, vending and a-
musement machines, pho-
tographic equipment, me-
dical and dental equip-
ment and appliances, and
ophthalmic goods. In-
cludes assets used by ma-
nufacturers or rebuilders
of such finished machi-
nery and equipment in ac-
tivities elsewhere cla-
ssified such as the ma-
nufacture of castings,
forgings, rubber and
plastic products, elec-
tronic subassemblies or
other manufacturing ac-
tivities if the interim
products are used by the
same manufacturer prima-
rily in the manufacture,
assembly, or rebuilding
of such finished machi-
nery and equipment. Does
not include assets used
in mining, assets used
in the manufacture of
primary ferrous and non-
ferrous metals, assets
included in guideline
class 00.11 through 00.4
and assets elsewhere
classified _____________ 8 10 12 11
36.0 Manufacture of Electronic
Components, Products, and
Systems:
Includes assets used in
the manufacture of elec-
tronic communication,
computation, instrumen-
tation and control sys-
tems, including airborne
applications; also in-
cludes assets used in the
manufacture of electronic
products such as fre-
quency and amplitude
modulated transmitters
and receivers, electronic
switching stations, tele-
vision cameras, video re-
corders, record players
and tape recorders, com-
puters and computer peri-
pheral machines, and
electronic instruments,
watches, and clocks; also
includes assets used in
the manufacture of compo-
nents, provided their
primary use is in products
and systems defined above
such as semiconductors,
electron tubes, capa-
citors, coils, resistors,
printed circuit substrates,
switches, harness cables,
lasers, fiber optic devices,
and magnetic media devices.
Specifically excludes
assets used to manufac-
ture electronic products
and components, photo-
copiers, typewriters,
postage meters and other
electromechanical and
mechanical business
machines and instruments
that are elsewhere
classified _____________ 5 6 7 8
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 in-
clude assets used in
mining, printing and
publishing, production
of primary metals, elec-
tricity, or steam, or
the manufacture of glass,
industrial chemicals,
batteries, or rubber
products, which are
classified elsewhere.
Includes assets used in
manufacturing activities
elsewhere classified
other than those excluded
above, where such activi-
ties 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 products,
electrical equipment,
textiles, plastics,
leather, and foundry and
forging operations. Does
not include any assets
not classified in manu-
facturing activity
classes, e.g., does not
include assets classified
in asset guideline classes
00.11 through 00.4. Acti-
vities will be considered
incidental to the manufac-
ture and assembly of
finished motor vehicles
only if 75 percent or more
of the value of the pro-
ducts produced under one
roof are used for the
manufacture and assembly
of finished motor vehi-
cles. Parts that are pro-
duced as a normal replace-
ment 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 taxpayers not engaged
in the assembly of fi-
nished 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 specifically
designed for the produc-
tion or processing of
particular motor vehicle
components and have no
significant 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 equip-
ment 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 com-
ponent parts including
hydraulic, pneumatic,
electrical, and mechani-
cal systems. Does not
include assets used in
the production of elec-
tronic airborne detection,
guidance, control, radia-
tion, computation, test,
navigation, and communica-
tion equipment or the com-
ponents thereof ________ 8 10 12 7.5
37.31 Ship and Boat Building
Machinery and Equipment:
Includes assets used in
the manufacture and re-
pair of ships, boats,
caissons, marine drilling
rigs, and special fabri-
cations not included in
asset guideline classes
37.32 and 37.33. Specifi-
cally includes all manu-
facturing and repairing
machinery and equipment,
including machinery and
equipment used in the
operation of assets in-
cluded in asset guide-
line class 37.32. Ex-
cludes buildings and
their structural com-
ponents ________________ 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 re-
pair of ships, boats,
caissons, marine drilling
rigs, and special fabri-
cations not included in
asset guideline classes
37.31 and 37.33. Speci-
fically 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 struc-
tural components _______ 13 16 19 2.5
37.33 Ship and Boat
Building--Special Tools:
Includes assets defined
as special tools such as
dies, jigs, molds, pa-
tterns, fixtures, gauges,
and drawings concerning
such special tools used
in the activities defined
in classes 37.31 and
37.32. Special tools are
specifically designed for
the production or proces-
sing of particular machine
components, 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 par-
ticular part produced by
the special tools. Does
not include general pur-
pose 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 ________________ 5 6.5 8 0.5
37.41 Manufacture of Locomotives:
Includes assets used in
building or rebuilding
railroad locomotives (in-
cluding mining and indus-
trial locomotives). Does
not include assets of
railroad transportation
companies or assets of
companies which manufac-
ture components of loco-
motives but do not manu-
facture finished locomo-
tives __________________ 9 11.5 14 7.5
37.42 Manufacture of Railroad
Cars:
Includes assets used in
building or rebuilding
railroad freight or
passenger cars (including
rail transit cars). Does
not include assets of
railroad transportation
companies or assets of
companies which manufac-
ture components of rail-
road cars but do not manu-
facture finished railroad
cars ___________________ 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
identified below that
are used in the commer-
cial and contract
carrying of passengers
and freight by rail.
Assets of electrified
railroads will be clas-
sified in a manner cor-
responding to that set
forth below for rail-
roads not independently
operated as electric
lines. Excludes the assets
included in classes with
the prefix beginning 00.1
and 00.2 above, and also
excludes any non-depre-
ciable assets included in
Interstate Commerce Com-
mission accounts enume-
rated for this class.
40.1 Railroad Machinery and
Equipment:
Includes assets classified
in the following Inter-
state 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 sys-
tems
(27) Signals and inter-
lockers
(37) Roadway machines
(44) Shop machinery
Equipment Accounts:
(52) Locomotives
(53) Freight train cars
(54) Passenger train
cars
(57) Work equipment __ 11 14 17 16.5
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
structures only)
(17) Roadway buildings
(18) Water stations
(19) Fuel stations
(20) Shops and engine-
houses
(25) TOFC/COFC terminals
(operating struc-
tures only)
(31) Power transmission
systems
(35) Miscellaneous struc-
tures
(39) Public improve-
ments cons-
truction ________ 24 30 36 5
40.3 Railroad Wharves and
Docks
Includes assets classified
in the following Interstate
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 transpor-
tation assets included in
classes with the prefix
00.2 ___________________ 6.5 8 9.5 11.5
42.0 Motor Transport-Freight:
Includes assets used in
the commercial and con-
tract 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 con-
tract carrying of
freight and passengers
by water except the
transportation assets
included in classes with
the prefix 00.2. In-
cludes all related land
improvements ___________ 16 20 24 8
45.0 Air Transport:
Includes assets (except
helicopters) used in com-
mercial and contract
carrying of passengers
and freight by air. For
purposes of section
1.167(a)-11(d)(2)(iv)(a)
of the regulations, expen-
ditures for "repair, main-
tenance, rehabilitation,
or improvement" shall
consist of direct main-
tenance expenses (irres-
pective of airworthiness
provisions or charges) as
defined by Civil Aeronau-
tics Board uniform ac-
counts 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 ac-
counts in the Civil Aero-
nautics Board uniform sys-
tem of accounts ________ 9.5 12 14.5 15
45.1 Air Transport (restricted)
Includes each asset des-
cribed in the description
of class 45.0 which was
held by the taxpayer on
April 15, 1976, or is ac-
quired by the taxpayer
pursuant to a contract
which was, on April 15,
1976, and at all times
thereafter, binding on
the taxpayer. This cri-
terion of classification
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 spe-
cified in Rev. Rul. 72-
403, 1972-2 C.B. 102, but
includes all other rela-
ted land improvements __ 17.5 22 26.5 3
Telephone Communications:
Includes the assets identi-
fied 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 Com-
mission Part 31 Account
No. 212 whether section
1245 or section 1250 pro-
perty __________________ 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 ________________ -- 18 -- --
48.13 Telephone Station Equip-
ment:
Includes such station
apparatus and connec-
tions as teletypewri-
ters, telephones, booths,
private exchanges, and
comparable equipment as
defined in Federal Commu-
nications 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 interna-
tional radio-telegraph,
wire-telegraph, ocean-
cable, and satellite
communications services;
also includes related
land improvements.
48.31 TOCSC-Electric Power
Generating and Distribu-
tion Systems:
Includes assets used in
the provision of electric
power by generation, mo-
dulation, 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 recei-
vers, antenna supporting
structures, antennas,
transmission lines from
equipment to antenna,
transmitter cooling sys-
tems, and control and
amplification 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 sta-
tions, 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 ge-
neral control, switching,
and monitoring of commu-
nications signals inclu-
ding electromechanical
switching and channeling
apparatus, multiplexing
equipment, patching and
monitoring facilities,
in-house cabling, tele-
printer equipment, and
associated site improve-
ments __________________ 13 16.5 20 --
48.35 TOCSC-Computerized
Switching, Channeling,
and Associated Control
Equipment:
Includes central office
switching computers,
interfacing computers,
other associated specia-
lized control equipment,
and site improvements __ 8.5 10.5 12.5 --
48.36 TOCSC-Satellite Ground
Segment Property:
Includes assets such as
fixed earth station equip-
ment, antennas, satellite
communications equipment,
and interface equipment
used in satellite communi-
cations. Does not include
general purpose equipment
or equipment used in sa-
tellite space segment pro-
perty __________________ 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 gene-
ration and distribution
systems, private switching
center, teleprinters, fac-
simile equipment, and
other associated and re-
lated equipment ________ 8 10 12 --
48.39 TOCSC-Support and Service
Equipment:
Includes assets used to
support but not engage in
communications. Includes
store, warehouse and shop
tools, and test and labo-
ratory assets __________ 11 13.5 16 --
Cable Television (CATV):
Includes communications-
related assets used to
provide cable television
(communications antenna
television services).
Does not include assets
used to provide subscri-
bers with two-way commu-
nications 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, pedes-
tals, 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 ser-
vices. Does not include
assets used in the provi-
sion 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 pro-
duction of electricity
for sale, including
related 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 produc-
tion 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 fabrica-
ted nuclear fuel and con-
tainer) 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. Also
includes package boilers,
electric generators and
related assets such as
electricity and steam
distribution systems as
used by a waste reduc-
tion and resource reco-
very plant if the steam
or electricity is normally
for sale to others _____ 22.5 28 33.5 5
49.14 Electric Utility Trans-
mission and Distribution
Plant:
Includes assets used in
the transmission and
distribution of electri-
city for sale and related
land improvements. Ex-
cludes 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 Combus-
tion 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 combus-
tion engines, their asso-
ciated 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:
Includes gas water heaters
and gas conversion equip-
ment installed 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.
Does not include gas
producing systems and
related systems used in
waste reduction and
resource recovery plants
which are elsewhere
classified _____________ 24 30 36 2
49.222 Gas Utility Substitute
Natural Gas (SNG) Produc-
tion Plant (naptha or
lighter hydrocarbon feed-
stocks):
Includes assets used in
the catalytic conversion
of feedstocks or naphtha
or lighter hydrocarbons
to a gaseous fuel which
is completely inter-
changeable with domestic
natural gas ____________ 11 14 17 4.5
49.223 Substitute Natural Gas-
Coal Gasification:
Includes assets used in
the manufacture and pro-
duction of pipeline qua-
lity gas from coal using
the basic Lurgi process
with advanced methanation.
Includes all process plant
equipment and structures
used in this coal gasifi-
cation process and all
utility assets such as
cooling systems, water
supply and treatment
facilities, and assets
used in the production
and distribution of elec-
tricity and steam for use
by the taxpayer in a ga-
sification plant and
attendant coal mining
site processes but not
for assets used in the
production and distribu-
tion of electricity and
steam for sale to others.
Also includes all other
related land improvements.
Does not include assets
used in the direct mining
and treatment of coal
prior to the gasification
process itself _________ 14.5 18 21.5 15
49.23 Natural Gas Production
Plant __________________ 11 14 17 4.5
49.24 Gas Utility Trunk Pipe-
lines and Related Storage
Facilities:
Excluding initial clearing
and grading land improve-
ments 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,
instrumentation equipment
and controls, pumps, vapo-
rizers and odorizers,
tanks, and related land
improvements. Also includes
pipeline interconnections
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 distribution of
water ___________________ 40 50 60 1.5
49.4 Central Steam Utility Pro-
duction and Distribution:
Includes assets used in
the production and distri-
bution of steam for sale.
Does not include assets
used in waste reduction and
resource recovery plants
which are elsewhere clas-
sified __________________ 22.5 28 33.5 2.5
49.5 Waste Reduction and
Resource Recovery Plants:
Includes assets used in
the conversion of refuse
or other solid waste or
biomass to heat or to a
solid, liquid, or gaseous
fuel. Also includes all
process plant equipment
and structures at the
site used to receive,
handle, collect, and
process refuse or other
solid waste or biomass to
a solid, liquid, or gaseous
fuel or to handle and burn
refuse or other solid
waste or biomass in a
waterwall combustion sys-
tem, oil or gas pyrolysis
system, or refuse derived
fuel system to create hot
water, gas, steam and
electricity. Includes ma-
terial recovery and sup-
port assets used in refuse
or solid refuse or solid
waste receiving, collec-
ting, handling, sorting,
shredding, classifying,
and separation systems.
Does not include any
package boilers, or
electric generators and
related assets such as
electricity, hot water,
steam and manufactured
gas production plants
classified in classes
00.4, 49.13, 49.221, and
49.4. Does include, how-
ever, all other utilities
such as water supply and
treatment facilities, ash
handling and other rela-
ted land improvements of
a waste reduction and
resource recovery plant _ 8 10 12 15
57.0 Distributive Trades and
Services:
Includes assets used in
wholesale and retail trade,
and personal and profes-
sional services. Includes
section 1245 assets used
in marketing petroleum and
petroleum products ______ 7 9 11 8
57.1 Distributive Trades and
Services-Billboard, Service
Station Buildings and Pet-
roleum Marketing Land Im-
provements:
Includes section 1250
assets, including service
station buildings and
depreciable land improve-
ments, whether section 1245
property or section 1250
property, used in the mar-
keting of petroleum and
petroleum products, but
not including any of these
facilities related to pet-
roleum and natural gas
trunk pipelines. Includes
car wash buildings and
related land improvements.
Includes billboards,
whether such assets are
section 1245 property or
section 1250 property. Ex-
cludes all other land im-
provements, buildings and
structural components as
defined in section 1.48-
1(e) of the regulations _ 16 20 24 5
79.0 Recreation:
Includes assets used in
the provision of entertain-
ment 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 improve-
ments or structures, such
as golf courses, sports
stadia, race tracks, ski
slopes, and buildings which
house the assets used in
entertainment services __ 8 10 12 6.5
80.0 Theme and Amusement Parks:
Includes assets used in
the provision of rides,
attractions, and amusements
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
structures, and buildings
other than warehouses, ad-
ministration buildings,
hotels, and motels. In-
cludes all land improve-
ments 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, souve-
nir vending and other non-
lodging accommodations) if
owned by the park and pro-
vided exclusively for the
benefit of park patrons.
Theme and amusement parks
are defined as combina-
tions 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 ex-
cept transportation equip-
ment (general purpose
trucks, cars, airplanes,
etc., which are included
in asset guideline
classes with the prefix
00.2), assets used in the
provision of administra-
tive services (asset guide-
line classes with the pre-
fix 00.1), and warehouses,
administration buildings,
hotels and motels ______ 10 12.5 15 12.5
Sec. 4. Effect on Other Documents
Rev. Procs. 77-10, 77-14, 78-4, 78-5, 79-26, 79-35, 79-41, 79-42, 79-60, 79-64, 79-65, 80-15, 80-33, 80-58, and 82-67 are superseded.
DOCUMENT ATTRIBUTES
- Cross-Reference
26 CFR 601.105: Examination of returns and claims for refund
credit, or abatement; determination of correct tax liability.
(Also Part I, Section 167; 1.167(a)-11.)
- Code Sections
- LanguageEnglish
- Tax Analysts Electronic Citationnot available
