rev. proc. 87-56 - 5

8/12/2019 Rev. Proc. 87-56 - 5

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REV-PROC, Accelerated cost recovery: Recovery classes: Class lives: Recovery periods.--, Revenue

Procedure 87-56, (Jan. 01, 1987)Revenue Procedure 87-56,

Accelerated cost recovery: Recovery classes: Class lives: Recovery periods.--Recovery clae, cla

l!ve, and recovery "er!od #or a!$ned "ro"er%y are added &y %'e a Re#or* +c% o# 1986. +C

REERE/CE 87E2 3174+, 87E2 31742.005, 87E2 31742.008, 87E2 31742.08, 87E2 31742.16, 87E2 3185.01 and 87E2 3742.007.

ECO/ 1. PRPOE

'e "ur"oe o# %'! revenue "rocedure ! %o e% #or%' %'e cla l!ve o# "ro"er%y %'a% are neceary %o

co*"u%e %'e de"rec!a%!on alloance ava!la&le under ec%!on 168 o# %'e n%ernal Revenue Code, a

a*ended &y ec%!on 01(a) o# %'e a Re#or* +c% o# 1986 (+c%), 1986-4 (Vol. 1) C.. 48. Rev. Proc. 87-57,

"a$e 687, %'! ulle%!n, decr!&e %'e a""l!ca&le de"rec!a%!on *e%'od, a""l!ca&le recovery "er!od, and

a""l!ca&le conven%!on %'a% *u% &e ued !n co*"u%!n$ de"rec!a%!on alloance under ec%!on 168.

EC. . :E/ER+; R;E O +PP;C+O/

.01 In general. '! revenue "rocedure "ec!#!e cla l!ve and recovery "er!od #or "ro"er%y u&<ec% %o

de"rec!a%!on under %'e $eneral de"rec!a%!on y%e* "rov!ded !n ec%!on 168(a) o# %'e Code or %'e al%erna%!ve

de"rec!a%!on y%e* "rov!ded !n ec%!on 168($).

.0 Definition of Class Life. Ece"% !%' re"ec% %o cer%a!n a!$ned "ro"er%y decr!&ed !n ec%!on 4 o#

%'! revenue "rocedure, #or "ur"oe o# &o%' %'e $eneral de"rec!a%!on y%e* and %'e al%erna%!ve

de"rec!a%!on y%e*, %'e %er* =cla l!#e> *ean %'e cla l!#e %'a% ould &e a""l!ca&le #or any "ro"er%y a

o# January 1, 1986, under ec%!on 167(*) o# %'e Code (de%er*!ned !%'ou% re$ard %o "ara$ra"' %'ereo#

and de%er*!ned a !# %'e %a"ayer 'ad *ade an elec%!on under ec%!on 167(*)). 'e cla l!#e %'a% ould &e

a""l!ca&le #or any "ro"er%y a o# January 1, 1986, under ec%!on 167(*), ! %'e ae% $u!del!ne "er!od

(*!d"o!n% cla l!#e) #or %'e ae% $u!del!ne cla !n '!c' uc' "ro"er%y ! cla!#!ed under Rev. Proc. 84-45, 1984-1 C.. 75. ?oever, #or "ur"oe o# %'e al%erna%!ve de"rec!a%!on y%e*, ec%!on 168($)(4)()

a!$n a cla l!#e %o cer%a!n "ro"er%y %'a% ! %a@en !n%o accoun% under ec%!on 168 ra%'er %'an %'e cla l!#e

%'a% ould &e a""l!ca&le a o# January 1, 1986. 'e cla l!#e o# "ro"er%y %'a% ! e!%'er de%er*!ned a o#

January 1, 1986, under Rev. Proc. 84-45 or a!$ned under ec%!on 168($)(4)() *ay &e *od!#!ed &y %'e

ecre%ary "uruan% %o au%'or!%y $ran%ed under ec%!on 168(!)(1). ee ec%!on o# %'! revenue "rocedure.

.04 Rev. Proc. 83-35. Rev. Proc. 84-45 e% ou% %'e ae% $u!del!ne clae, ae% $u!del!ne "er!od and

ran$e, and annual ae% $u!del!ne re"a!r alloance "ercen%a$e #or %'e Cla ;!#e +e% 2e"rec!a%!on

Ran$e y%e*. 'e ae% $u!del!ne "er!od (*!d"o!n% cla l!ve) e% ou% !n Rev. Proc. 84-45 are alo ued

!n de#!n!n$ %'e clae o# recovery "ro"er%y under %'e +ccelera%ed Co% Recovery y%e* (%'a% !, ec%!on

168 o# %'e Code a !n e##ec% "r!or %o a*end*en% &y ec%!on 01 o# %'e +c%). Rev. Proc. 84-45 re*a!n

e##ec%!ve #or "ro"er%y u&<ec% %o de"rec!a%!on under %'oe y%e*. Rev. Proc. 84-45 doe no% a""ly %o

"ro"er%y u&<ec% %o de"rec!a%!on under ec%!on 168, o%'er %'an a a &a! #or de%er*!n!n$ %'e cla l!ve o#uc' "ro"er%y under ec%!on .0 o# %'! revenue "rocedure.

.0 Property with no class life. Pro"er%y %'a% ! ne!%'er decr!&ed !n an ae% $u!del!ne cla l!%ed !nec%!on 5 o# %'! revenue "rocedure nor a!$ned a cla l!#e under ec%!on 168($)(4)() o# %'e Code !

%rea%ed a "ro"er%y 'av!n$ no cla l!#e #or "ur"oe o# ec%!on 168 unle and un%!l a cla l!#e ! "recr!&ed

&y %'e ecre%ary "uruan% %o %'e au%'or!%y $ran%ed under ec%!on 168(!)(1). ee ec%!on o# %'! revenue

"rocedure. 'e $eneral and al%erna%!ve de"rec!a%!on y%e* con%a!n e"ara%e rule #or cla!#y!n$ "ro"er%y

%'a% doe no% 'ave a cla l!#e.

EC. 4. +:/E2 PROPERA B? +:/E2 C;+ ;VE, RECOVERA C;+E, OR

RECOVERA PERO2

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nder ec%!on 168(!)(1)(E) o# %'e Code, %'e %er* =a!$ned "ro"er%y> *ean "ro"er%y #or '!c' a cla l!#e,

recovery cla, or recovery "er!od ! a!$ned under ec%!on 168(e)(4) or ec%!on 168($)(4)(), (C), or (2),

and %'e %er* =a!$ned !%e*> *ean %'e cla l!#e, recovery cla, or recovery "er!od a!$ned under ec%!on

168(e)(4) or ec%!on 168($)(4)(), (C), or (2). or "ur"oe o# %'e $eneral de"rec!a%!on y%e* a!$ned

"ro"er%y under ec%!on 168(e)(4) ! a!$ned %o a recovery cla !%'ou% re$ard %o uc' "ro"er%y cla l!#e.

(ee ec%!on 4.0 o# Rev. Proc. 87-57, %'! ulle%!n.) or "ur"oe o# %'e al%erna%!ve de"rec!a%!on y%e*,cer%a!n a!$ned "ro"er%y ! a!$ned a cla l!#e under ec%!on 168($)(4)(), no%!%'%and!n$ uc'

"ro"er%y cla l!#e a e% ou% !n Rev. Proc. 84-45. ee ec%!on 4.04 o# Rev. Proc. 87-57, %'! ulle%!n. or

"ur"oe o# %'e al%erna%!ve de"rec!a%!on y%e*, cer%a!n a!$ned "ro"er%y ! a!$ned a recovery "er!od

under ec%!on 168($)(4)(C), (2), or (E), no%!%'%and!n$ uc' "ro"er%y cla l!#e (!# any).

EC. . PRECRPO/ +/2 DO2C+O/ O C;+ ;VE

.01 ec%!on 168(!)(1)() o# %'e Code "rov!de %'a% %'e ecre%ary, %'rou$' an o##!ce e%a&l!'ed !n %'e

reaury, 'all *on!%or and analye ac%ual e"er!ence !%' re"ec% %o all de"rec!a&le ae%. Ece"% !n %'ecae o# ec%!on 150 "ro"er%y %'a% ! re!den%!al ren%al "ro"er%y or nonre!den%!al real "ro"er%y, %'e

ecre%ary, %'rou$' %'a% o##!ce, (!) *ay "recr!&e a ne cla l!#e #or any "ro"er%y, (!!) !n %'e cae o# a!$ned

"ro"er%y, *ay *od!#y any a!$ned !%e*, or (!!!) *ay "recr!&e a cla l!#e #or any "ro"er%y %'a% doe no%

'ave a cla l!#e !%'!n %'e *ean!n$ o# ec%!on .0 o# %'! revenue "rocedure. +ny cla l!#e or a!$ned!%e* %'a% ! "recr!&ed or *od!#!ed "uruan% %o %'! au%'or!%y 'all &e ued #or all "ur"oe !n de%er*!n!n$

de"rec!a%!on alloance under %'e $eneral de"rec!a%!on y%e* and %'e al%erna%!ve de"rec!a%!on y%e*. n

%'e cae o# a!$ned "ro"er%y a de#!ned !n ec%!on 168(!)(1)(E), no cla l!#e e% #or%' !n %'! revenue

"rocedure nor any o%'er a!$ned !%e* *ay &e *od!#!ed, unle uc' *od!#!ca%!on re#lec% a 'or%en!n$ o#uc' cla l!#e, #or "ro"er%y "laced !n erv!ce "r!or %o January 1, 199.

.0 Precr!"%!on or *od!#!ca%!on o# cla l!ve under %'e au%'or!%y $ran%ed !n ec%!on 168(!)(1)() o# %'e

Code 'all re#lec% %'e an%!c!"a%ed ue#ul l!ve, and %'e an%!c!"a%ed decl!ne !n value over %!*e (%'a% !,

econo*!c de"rec!a%!on) o# an ae% %o %'e !ndu%ry or o%'er $rou". Rule and "rac%!ce $overn!n$ "recr!"%!on and *od!#!ca%!on o# cla l!ve "uruan% %o %'e au%'or!%y $ran%ed !n ec%!on 168(!)(1)() 'all &e

announced %'rou$' %'e o##!ce re#erred %o !n ec%!on .01 o# %'! revenue "rocedure.

EC. 5. +;E O C;+ ;VE +/2 RECOVERA PERO2

.01 Ece"% #or "ro"er%y decr!&ed !n ec%!on 5.0, &elo, %'e cla l!ve (!# any) and recovery "er!od #or "ro"er%y u&<ec% %o de"rec!a%!on under ec%!on 168 o# %'e Code a""ear !n %'e %a&le &elo. 'ee %a&le are

&aed on %'e de#!n!%!on o# cla l!#e !n ec%!on .0 o# %'! revenue "rocedure and %'e a!$ned !%e*

decr!&ed !n ec%!on 4 o# %'! revenue "rocedure.

.0 or "ur"oe o# de"rec!a%!on under %'e $eneral de"rec!a%!on y%e*, re!den%!al ren%al "ro"er%y 'a arecovery "er!od o# 7.5 year and nonre!den%!al real "ro"er%y 'a a recovery "er!od o# 41.5 year. or

"ur"oe o# %'e al%erna%!ve de"rec!a%!on y%e*, re!den%!al ren%al and nonre!den%!al real "ro"er%y eac' 'a

a recovery "er!od o# 0 year.

nder ec%!on 168(e)()()(!!) o# %'e Code, =nonre!den%!al real "ro"er%y> doe no% !nclude any "ro"er%y

decr!&ed !n an ae% cla !%' a cla l!#e o# le %'an 7.5 year. Even !# nonre!den%!al real "ro"er%y !

decr!&ed !n an ae% cla !%' a cla l!#e o# 7.5 year or *ore, %'e a""l!ca&le recovery "er!od #or %'a%

"ro"er%y ! 41.5 year #or "ur"oe o# %'e $eneral de"rec!a%!on y%e* and 0 year #or "ur"oe o# %'e

al%erna%!ve de"rec!a%!on y%e*, re$ardle o# %'e a""l!ca&le recovery "er!od e% ou% #or %'e ae% cla !n

%'e %a&le &elo.

.04 :enerally, %'e ae% clae !n %'e %a&le are !ncor"ora%ed #ro* %'e ae% $u!del!ne clae !n Rev.

Proc. 84-45 a o# January 1, 1986. ?oever, decr!"%!on o# %'e #ollo!n$ ae% clae 'ave &een a*ended

or added 00.1, 00.4, 01.1--01.5, 01.4, 01., 46.0, 46.1, 0., 8.1, 8.11, 8.41-8.5, 50, and 51.

8/12/2019 Rev. Proc. 87-56 - 5


Cer%a!n ae% $u!del!ne clae !n Rev. Proc. 84-45 !ncluded "ro"er%y on %'e &a! o# re$ula%ed accoun%. or

"ur"oe o# ec%!on 168 o# %'e Code and %'! revenue "rocedure, ae% clae !nclude "ro"er%y decr!&ed

%'ere!n !%'ou% re$ard %o 'e%'er a %a"ayer ! a re$ula%ed "u&l!c u%!l!%y or an unre$ula%ed co*"any.

.0 n add!%!on %o "ec!#y!n$ cla l!ve #or eac' ae% $u!del!ne cla, %'e %a&le l!% cer%a!n "ro"er%y #or

'!c' a recovery "er!od ! a!$ned, no%!%'%and!n$ uc' "ro"er%y cla l!#e (!# any). ee ec%!on 4 o# %'!

revenue "rocedure. 'e l!%ed a!$ned "ro"er%y clae (deno%ed +-E) $enerally do no% corre"ond %o ae%$u!del!ne clae #or '!c' cla l!ve are "ec!#!ed !n %'e %a&le. 'e cla l!#e (!# any) o# an !%e* o#a!$ned "ro"er%y decr!&ed !n clae +-E ! de%er*!ned &y re#erence %o %'e ae% $u!del!ne cla (!# any)

con%a!n!n$ uc' !%e* o# "ro"er%y. # an !%e* o# a!$ned "ro"er%y decr!&ed !n clae +-E ! no% con%a!ned

!n any ae% $u!del!ne cla, uc' !%e* o# "ro"er%y 'a no cla l!#e.

Exaples. Fual!#!ed %ec'nolo$!cal eGu!"*en% a de#!ned !n ec%!on 168(!)() (cla ) ! a!$ned arecovery "er!od o# 5 year #or &o%' %'e $eneral and al%erna%!ve de"rec!a%!on y%e*, no%!%'%and!n$ uc'

"ro"er%y cla l!#e (!# any). Pro"er%y '!c' ! a co*"u%er or "er!"'eral eGu!"*en%, '!$' %ec'nolo$y

%ele"'one %a%!on eGu!"*en% !n%alled on %'e cu%o*er "re*!e or '!$' %ec'nolo$y *ed!cal eGu!"*en%

!%'!n %'e *ean!n$ o# ec%!on 168(!)(), *ay &e decr!&ed !n ae% $u!del!ne cla 00.1 (cla l!#e 6 year),

8.14 (cla l!#e 10 year) or 57.0 (cla l!#e 9 year), re"ec%!vely. Pro"er%y ued !n connec%!on !%'

reearc' and e"er!*en%a%!on re#erred %o !n ec%!on 168(e)(4)() (cla C) ! a!$ned a recovery "er!od o# 5

year #or %'e $eneral de"rec!a%!on y%e*, no%!%'%and!n$ !% cla l!#e (!# any). uc' "ro"er%y recovery "er!od #or %'e al%erna%!ve de"rec!a%!on y%e* ! &aed on !% cla l!#e (!# any). +n !%e* o# "ro"er%y ued !nconnec%!on !%' reearc' and e"er!*en%a%!on 'a a cla l!#e !# uc' "ro"er%y ! con%a!ned !n an ae%

$u!del!ne cla.

.05 'e #ollo!n$ "ec!al rule are !ncor"ora%ed #ro* Rev. Proc. 84-45, ec%!on .0(!!!) and (!v)

1 +e% $u!del!ne cla 00.4, =;and *"rove*en%,> !nclude =o%'er %an$!&le "ro"er%y> %'a% Gual!#!e

under ec%!on 1.8-1(d) o# %'e nco*e a Re$ula%!on. ?oever, a %ruc%ure %'a% ! een%!ally an !%e* o#

*ac'!nery or eGu!"*en% or a %ruc%ure %'a% 'oue "ro"er%y ued a an !n%e$ral "ar% o# an ac%!v!%y "ec!#!ed!n ec%!on 8(a)(1)()(!) o# %'e Code, !# %'e ue o# %'e %ruc%ure ! o cloely rela%ed %o %'e ue o# %'e

"ro"er%y %'a% %'e %ruc%ure clearly can &e e"ec%ed %o &e re"laced 'en %'e "ro"er%y !% !n!%!ally 'oue !

re"laced, ! !ncluded !n %'e ae% $u!del!ne cla a""ro"r!a%e %o %'e eGu!"*en% %o '!c' !% ! rela%ed.

+e% cla 40.11 !nclude $eneral re&u!ld!n$ or re'a&!l!%a%!on co% #or %'e "ec!al %ool de#!ned !n

cla 40.11 %'a% 'ave &een %rad!%!onally ca"!%al!ed a %'e co% o# a ne ae%.

EC. 6. EEC O/ O?ER REVE/E PROCE2RE

Rev. Proc. 84-45 ! o&ole%ed #or "ro"er%y %'a% ! u&<ec% %o ec%!on 168 o# %'e Code.

Recovery Per!od(in years)

Alter-

General native

Depre-Asset Class Life ciation

ciation

class Description of assets included (in years) System

System

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SPECIFIC DEPECIA!LE ASSE"S #SED I$ ALL !#SI$ESS AC"I%I"IES&

E'CEP" AS $"ED

Cla ;!#e D+CR

**+,, ffice Furniture& Fitures& and E.uipment

Includes furniture and fitures t/at are

not a structural component of a 0uildin1+

Includes suc/ assets as des2s& files&

safes& and communications e.uipment+ Does

not include communications e.uipment t/at

is included in ot/er classes++++++++++++++ ,* 3

**+,4 Information Systems

Includes computers and t/eir perip/eral

e.uipment used in administerin1 normal

0usiness transactions and t/e maintenance

of 0usiness records& t/eir retrieval and

analysis+ Information systems are defined

as

,) Computers A computer is a pro1ramma0le

electronically activated device capa0le of

acceptin1 information& applyin1 prescri0ed

processes to t/e information& and supplyin1

t/e results of t/ese processes 5it/ or

5it/out /uman intervention+ It usually

consists of a central processin1 unit

containin1 etensive stora1e& lo1ic&

arit/metic& and control capa0ilities+

Ecluded from t/is cate1ory are addin1

mac/ines& electronic des2 calculators&

etc+& and ot/er e.uipment descri0ed in

class **+,6+

4) Perip/eral e.uipment consists of t/e

auiliary mac/ines 5/ic/ are desi1ned to

0e placed under control of t/e central

processin1 unit+ $onlimitin1 eamples are

Card readers& card punc/es& ma1netic tape

feeds& /i1/ speed printers& optical c/aracter readers& tape cassettes& mass

stora1e units& paper tape e.uipment&

2eypunc/es& data entry devices&

teleprinters& terminals& tape drives&

disc drives& disc files& disc pac2s&

visual ima1e pro7ector tu0es& card sorters&

plotters& and collators+ Perip/eral

e.uipment may 0e used on-line or off-line+

8/12/2019 Rev. Proc. 87-56 - 5


Does not include e.uipment t/at is an

inte1ral part of ot/er capital e.uipment

t/at is included in ot/er classes of

economic activity& i+e+& computers used

primarily for process or production

control& s5itc/in1& c/annelin1& and

automatin1 distri0utive trades and services

suc/ as point of sale (PS) computer

systems+ Also& does not include e.uipment

of a 2ind used primarily for amusement or

entertainment of t/e user++++++++++++++++++ 8 9 :

9 :

: Property descri0ed in asset class **+,4 5/ic/ is .ualified

tec/nolo1ical e.uipment as defined in section ,8;(i)(4) is assi1ned a

recovery period of 9 years not5it/standin1 its class life+ See section

6 of t/e revenue procedure+

**+,6 Data <andlin1 E.uipment& ecept Computers

Includes only type5riters& calculators& addin1 and accountin1 mac/ines& copiers&

and duplicatin1 e.uipment++++++++++++++++++ 8 9

**+4, Airplanes (airframes and en1ines)& ecept

t/ose used in commercial or contract

carryin1 of passen1ers or frei1/t& and all

/elicopters (airframes and en1ines)++++++++ 8 9

**+44 Automo0iles& "ais+++++++++++++++++++++++++ 6 9

**+46 !uses++++++++++++++++++++++++++++++++++++++ = 9

**+4>, Li1/t General Purpose "ruc2s Includes truc2s for use over t/e road

(actual unloaded 5ei1/t less t/an ,6&***

pounds)++++++++++++++++++++++++++++++++++++ > 9

**+4>4 <eavy General Purpose "ruc2s

Includes /eavy 1eneral purpose truc2s&

concrete ready mi truc2ers& and ore

truc2s& for use over t/e road (actual

unloaded 5ei1/t ,6&*** pounds or more)+++++ 8 9

**+49 ailroad Cars and Locomotives& ecept

t/ose o5ned 0y railroad transportation

companies+++++++++++++++++++++++++++++++++ ,9 3 9

**+48 "ractor #nits For #se ver-"/e-oad++++++++ > 6

**+43 "railers and "railer-?ounted Containers++++ 8 9

**+4; %essels& !ar1es& "u1s& and Similar @ater

"ransportation E.uipment& ecept t/ose used

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in marine construction++++++++++++++++++++ ,; ,*

**+6 Land Improvements

Includes improvements directly to or added

to land& 5/et/er suc/ improvements are

section ,4>9 property or section ,49*

property& provided suc/ improvements are

deprecia0le+ Eamples of suc/ assets mi1/t

include side5al2s& roads& canals&

5ater5ays& draina1e facilities& se5ers (not

includin1 municipal se5ers in Class 9,)&

5/arves and doc2s& 0rid1es& fences&

landscapin1& s/ru00ery& or radio and

television transmittin1 to5ers+ Does not

include land improvements t/at are

eplicitly included in any ot/er class&

and 0uildin1s and structural components as

defined in section ,+>;-,(e) of t/e

re1ulations+ Ecludes pu0lic utility

initial clearin1 and 1radin1 land

improvements as specified in ev+ ul+ 34->*6& ,=34-4 C+!+ ,*4+++++++++++++++++++ 4* ,9

**+> Industrial Steam and Electric Generation

andor Distri0ution Systems

Includes assets& 5/et/er suc/ assets are

section ,4>9 property or ,49* property&

providin1 suc/ assets are deprecia0le& used

in t/e production andor distri0ution of

electricity 5it/ rated total capacity in

ecess of 9** Bilo5atts andor assets used

in t/e production andor distri0ution of

steam 5it/ rated total capacity in ecess

of ,4&9** pounds per /our for use 0y t/e

tapayer in its industrial manufacturin1

process or plant activity and not

ordinarily availa0le for sale to ot/ers+

Does not include 0uildin1s and structural

components as defined in section ,+>;-,(e)

of t/e re1ulations+ Assets used to 1enerate

andor distri0ute electricity or steam of

t/e type descri0ed a0ove 0ut of lesser

rated capacity are not included& 0ut are

included in t/e appropriate manufacturin1

e.uipment classes else5/ere specified+ Also

includes electric 1eneratin1 and steam

distri0ution assets& 5/ic/ may utilie

steam produced 0y a 5aste reduction and resource recovery plant& used 0y t/e

tapayer in its industrial manufacturin1

process or plant activity+ Steam and

c/emical recovery 0oiler systems used for

t/e recovery and re1eneration of c/emicals

used in manufacturin1& 5it/ rated capacity

in ecess of t/at descri0ed a0ove& 5it/

specifically related distri0ution and

return systems are not included 0ut are

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included in appropriate manufacturin1

e.uipment classes else5/ere specified+ An

eample of an ecluded steam and c/emical

recovery 0oiler system is t/at used in t/e

pulp and paper manufacturin1 industry+++++ 44 ,9

DEPECIA!LE ASSE"S #SED I$ "<E FLL@I$G AC"I%I"IES

*,+, A1riculture

Includes mac/inery and e.uipment& 1rain

0ins& and fences 0ut no ot/er land

improvements& t/at are used in t/e

production of crops or plants& vines& and

trees livestoc2 t/e operation of farm

dairies& nurseries& 1reen/ouses& sod farms&

mus/room cellars& cran0erry 0o1s& apiaries&

and fur farms t/e performance of

a1riculture& animal /us0andry& and

/orticultural services++++++++++++++++++++ ,* 3

*,+,, Cotton Ginnin1 Assets+++++++++++++++++++++ ,4 3*,+4, Cattle& !reedin1 or Dairy++++++++++++++++++ 3 9

*,+44, Any 0reedin1 or 5or2 /orse t/at is ,4 years

old or less at t/e time it is placed in

service :: +++++++++++++++++++++++++++++++ : 3

*,+444 Any 0reedin1 or 5or2 /orse t/at is more

t/an ,4 years old at t/e time it is placed

in service :: ++++++++++++++++++++++++++++ : 6

*,+446 Any race /orse t/at is more t/an 4 years old

at t/e time it is placed in service :: ++++ : 6

*,+44> Any /orse t/at is more t/an ,4 years old at

t/e time it is placed in service and t/at is neit/er a race /orse nor a /orse

descri0ed in class *,+444 :: ++++++++++++++ : 6

*,+449 Any /orse not descri0ed in classes *,+44,&

*,+444& *,+446& or *,+44>++++++++++++++++++ ,4 3

*,+46 <o1s& !reedin1+++++++++++++++++++++++++++++ 6 6

*,+4> S/eep and Goats& !reedin1++++++++++++++++++ 9 9

*,+6 Farm 0uildin1s ecept structures included

in Class *,+>+++++++++++++++++++++++++++++ 49 4*

*,+> Sin1le purpose a1ricultural or /orticultural

structures (5it/in t/e meanin1 of section

>;(p) of t/e Code)++++++++++++++++++++++++ ,9 3

,*+* ?inin1

Includes assets used in t/e minin1 and

.uarryin1 of metallic and nonmetallic

minerals (includin1 sand& 1ravel& stone&

and clay) and t/e millin1& 0eneficiation

and ot/er primary preparation of suc/

materials+++++++++++++++++++++++++++++++++ ,9 3

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: Property descri0ed in asset classes *,+446& *,+44>& and *,+449 are

assi1ned recovery periods under eit/er section ,8;(e)(6)(A) or section

,8;(1)(4)(C) 0ut /ave no class lives+

:: A /orse is more t/an 4 (or ,4) years old after t/e day t/at is 4>

(or ,>>) mont/s after its actual 0irt/ date+

,6+* ffs/ore Drillin1

Includes assets used in offs/ore drillin1

for oil and 1as suc/ as floatin1& self-

propelled and ot/er drillin1 vessels&

0ar1es& platforms& and drillin1 e.uipment

and support vessels suc/ as tenders&

0ar1es& to50oats and cre50oats+ Ecludes

oil and 1as production assets++++++++++++++ 3+9 9

,6+, Drillin1 of il and Gas @ells

Includes assets used in t/e drillin1 of

ons/ore oil and 1as 5ells and t/e provision

of 1eop/ysical and ot/er eploration

services and t/e provision of suc/ oil and 1as field services as c/emical treatment&

plu11in1 and a0andonin1 of 5ells and

cementin1 or perforatin1 5ell casin1s+ Does

not include assets used in t/e performance

of any of t/ese activities and services 0y

inte1rated petroleum and natural 1as

producers for t/eir o5n account++++++++++++ 8 9

,6+4 Eploration for and Production of Petroleum

and $atural Gas Deposits

Includes assets used 0y petroleum and

natural 1as producers for drillin1 of 5ells

and production of petroleum and natural 1as&

includin1 1at/erin1 pipelines and related

stora1e facilities+ Also includes petroleum

and natural 1as offs/ore transportation

facilities used 0y producers and ot/ers

consistin1 of platforms (ot/er t/an drillin1

platforms classified in Class ,6+*)&

compression or pumpin1 e.uipment& and

1at/erin1 and transmission lines to t/e

first ons/ore transs/ipment facility+ "/e

assets used in t/e first ons/ore

transs/ipment facility are also included

and consist of separation e.uipment (used

for separation of natural 1as& li.uids& and

solids)& compression or pumpin1 e.uipment (ot/er t/an e.uipment classified in Class

>=+46)& and li.uid /oldin1 or stora1e

facilities (ot/er t/an t/ose classified in

Class >=+49)+ Does not include support

vessels+++++++++++++++++++++++++++++++++++ ,> 3

,6+6 Petroleum efinin1

Includes assets used for t/e distillation&

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fractionation& and catalytic crac2in1 of

crude petroleum into 1asoline and its

ot/er components++++++++++++++++++++++++++ ,8 ,*

,9+* Construction

Includes assets used in construction 0y

1eneral 0uildin1& special trade& /eavy and

marine construction contractors& operative

and investment 0uilders& real estate

su0dividers and developers& and ot/ers

ecept railroads+++++++++++++++++++++++++++ 8 9 8

ecovery Periods

(in years)

Alter-

General native

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Depre-

Asset Class Life ciation

ciation


System

4*+, ?anufacture of Grain and Grain ?ill Products

Includes assets used in t/e production of

/ours& cereals& livestoc2 feeds& and ot/er

1rain and 1rain mill products+++++++++++++ ,3 ,* ,3

4*+4 ?anufacture of Su1ar and Su1ar Products


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ra5 su1ar& syrup& or finis/ed su1ar from

su1ar cane or su1ar 0eets+++++++++++++++++ ,; ,* ,;

4*+6 ?anufacture of %e1eta0le ils and %e1eta0le

il Products


oil from ve1eta0le materials and t/e

manufacture of related ve1eta0le oil

products++++++++++++++++++++++++++++++++++ ,; ,* ,;

4*+> ?anufacture of t/er Food and Bindred

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Products


foods and 0evera1es not included in classes

4*+,& 4*+4 and 4*+6+++++++++++++++++++++++ ,4 3 ,4

4*+9+ ?anufacture of Food and !evera1es--Special

<andlin1 Devices

Includes assets defined as specialied

materials /andlin1 devices suc/ as

returna0le pallets& palletied containers&

and fis/ processin1 e.uipment includin1

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0oes& 0as2ets& carts& and fla2in1 trays

used in activities as defined in classes

4*+,& 4*+4& 4*+6 and 4*+>+ Does not include

1eneral purpose small tools suc/ as 5renc/es

and drills& 0ot/ /and and po5er-driven& and

ot/er 1eneral purpose e.uipment suc/ as

conveyors& transfer e.uipment& and materials

/andlin1 devices+++++++++++++++++++++++++++ > 6 >

4,+* ?anufacture of "o0acco and "o0acco Products


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ci1arettes& ci1ars& smo2in1 and c/e5in1

to0acco& snuff& and ot/er to0acco

products++++++++++++++++++++++++++++++++++ ,9 3 ,9

44+, ?anufacture of Bnitted Goods


2nitted and netted fa0rics and lace+ Assets

used in yarn preparation& 0leac/in1& dyein1&

printin1& and ot/er similar finis/in1

processes& teturin1& and pac2a1in1& are

else5/ere classified++++++++++++++++++++++ 3+9 9

3+9

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44+4 ?anufacture of arn& "/read& and @oven

Fa0ric


spun yarns includin1 t/e preparin1&

0lendin1& spinnin1& and t5istin1 of fi0ers

into yarns and t/reads& t/e preparation of

yarns suc/ as t5istin1& 5arpin1& and

5indin1& t/e production of covered elastic

yarn and t/read& corda1e& 5oven fa0ric&

tire fa0ric& 0raided fa0ric& t5isted 7ute

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for pac2a1in1& mattresses& pads& s/eets&

and industrial 0elts& and t/e processin1 of

tetile mill 5aste to recover fi0ers&

floc2s& and s/oddies+ Assets used to

manufacture carpets& man-made fi0ers& and

non5ovens& and assets used in teturin1&

0leac/in1& dyein1& printin1& and ot/er

similar finis/in1 processes& are else5/ere

classified++++++++++++++++++++++++++++++++ ,, 3 ,,

44+6 ?anufacture of Carpets& and Dyein1&

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Finis/in1& and Pac2a1in1 of "etile

Products and ?anufacture of ?edical and

Dental Supplies


carpets& ru1s& mats& 5oven carpet 0ac2in1&

c/enille& and ot/er tufted products& and

assets used in t/e 7oinin1 to1et/er of

0ac2in1 5it/ carpet yarn or fa0ric+ Includes

assets used in 5as/in1& scourin1& 0leac/in1&

dyein1& printin1& dryin1& and similar

finis/in1 processes applied to tetile

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fa0rics& yarns& t/reads& and ot/er tetile

1oods+ Includes assets used in t/e

production and pac2a1in1 of tetile

products& ot/er t/an apparel& 0y creasin1&

formin1& trimmin1& cuttin1& and se5in1& suc/

as t/e preparation of carpet and fa0ric

samples& or similar 7oinin1 to1et/er

processes (ot/er t/an t/e production of

scrim reinforced paper products and

laminated paper products)& suc/ as t/e

8/12/2019 Rev. Proc. 87-56 - 5


se5in1 and foldin1 of /osiery and panty

/ose& and t/e creasin1& foldin1& trimmin1&

and cuttin1 of fa0rics to produce non5oven

products& suc/ as disposa0le diapers and

sanitary products+ Also includes assets

used in t/e production of medical and

dental supplies ot/er t/an dru1s and

medicines+ Assets used in t/e manufacture

of non5oven carpet 0ac2in1& and /ard surface

floor coverin1& suc/ as tile& ru00er& and

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cor2& are else5/ere classified+++++++++++++ = 9 =

44+> ?anufacture of "etured arns

Includes assets used in t/e processin1 of

yarns to impart 0ul2 andor stretc/

properties to t/e yarn+ "/e principal

mac/ines involved are falset5ist& dra5&

0eam-to-0eam& and stuffer 0o teturin1

e.uipment and related /i1/speed t5isters

and 5inders+ Assets& as descri0ed a0ove&

5/ic/ are used to furt/er process man-made

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fi0ers are else5/ere classified 5/en

located in t/e same plant in an inte1rated

operation 5it/ man-made fi0er producin1

assets+ Assets used to manufacture man-made

fi0ers and assets used in 0leac/in1& dyein1&

printin1& and ot/er similar finis/in1

processes& are else5/ere classified++++++++ ; 9 ;

44+9 ?anufacture of $on5oven Fa0rics


non5oven fa0rics& felt 1oods includin1 felt

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/ats& paddin1& 0attin1& 5addin1& oa2um& and

fillin1s& from ne5 materials and from

tetile mill 5aste+ $on5oven fa0rics are

defined as fa0rics (ot/er t/an reinforced

and laminated composites consistin1 of

non5ovens and ot/er products) manufactured

0y 0ondin1 natural andor synt/etic fi0ers

andor filaments 0y means of induced

mec/anical interloc2in1& fluid entan1lement&

c/emical ad/esion& t/ermal or solvent

reaction& or 0y com0ination t/ereof ot/er

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t/an natural /ydration 0ondin1 as occurs

5it/ natural cellulose fi0ers+ Suc/ means

include resin 0ondin1& 5e0 0ondin1& and

melt 0ondin1+ Specifically includes assets

used to ma2e floc2ed and needle punc/ed

products ot/er t/an carpets and ru1s+

Assets& as descri0ed a0ove& 5/ic/ are used

to manufacture non5ovens are else5/ere

classified 5/en located in t/e same plant

in an inte1rated operation 5it/ man-made

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fi0er producin1 assets+ Assets used to

manufacture man-made fi0ers and assets used

in 0leac/in1& dyein1& printin1& and ot/er

similar finis/in1 processes& are else5/ere

classified++++++++++++++++++++++++++++++++ ,* 3 ,*

46+* ?anufacture of Apparel and t/er Finis/ed

Products


clot/in1 and fa0ricated tetile products 0y

t/e cuttin1 and se5in1 of 5oven fa0rics&

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ot/er tetile products+ and furs 0ut does

not include assets used in t/e manufacture

of apparel from ru00er and leat/er+++++++++ = 9 =

4>+, Cuttin1 of "im0er

Includes lo11in1 mac/inery and e.uipment and

road0uildin1 e.uipment used 0y lo11in1 and

sa5mill operators and pulp manufacturers

for t/eir o5n account++++++++++++++++++++++ 8 9 8

4>+4 Sa5in1 of Dimensional Stoc2 from Lo1s

Includes mac/inery and e.uipment installed

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in permanent or 5ell esta0lis/ed sa5mills ,* 3 ,*

4>+6 Sa5in1 of Dimensional Stoc2 from Lo1s

Includes mac/inery and e.uipment installed

in sa5mills c/aracteried 0y temporary

foundations and a lac2& or minimum amount&

of lum0er/andlin1& dryin1& and residue

disposal e.uipment and facilities++++++++++ 8 9 8

4>+> ?anufacture of @ood Products& and Furniture


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ply5ood& /ard0oard& floorin1& veneers&

furniture& and ot/er 5ood products&

includin1 t/e treatment of poles and

tim0er++++++++++++++++++++++++++++++++++++ ,* 3 ,*

48+, ?anufacture of Pulp and Paper

Includes assets for pulp materials /andlin1

and stora1e& pulp mill processin1& 0leac/

processin1& paper and paper0oard

manufacturin1& and on-line finis/in1+

Includes pollution control assets and all

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land improvements associated 5it/ t/e

factory site or production process suc/ as

effluent ponds and canals& provided suc/

improvements are deprecia0le 0ut does not

include 0uildin1s and structural components

as defined in section ,+>;-,(e)(,) of t/e

re1ulations+ Includes steam and c/emical

recovery 0oiler systems& 5it/ any rated

capacity& used for t/e recovery and

re1eneration of c/emicals used in

manufacturin1+ Does not include assets

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used eit/er in pulp5ood lo11in1& or in t/e

manufacture of /ard0oard++++++++++++++++++ ,6 3 ,6

48+4 ?anufacture of Converted Paper& Paper0oard&

and Pulp Products

Includes assets used for modification& or

remanufacture of paper and pulp into

converted products& suc/ as paper coated

off t/e paper mac/ine& paper 0a1s& paper

0oes& cartons and envelopes+ Does not

include assets used for manufacture of

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non5ovens t/at are else5/ere classified+++ ,* 3 ,*

43+* Printin1& Pu0lis/in1& and Allied Industries

Includes assets used in printin1 0y one or

more processes& suc/ as letter-press&

lit/o1rap/y& 1ravure& or screen t/e

performance of services for t/e printin1

trade& suc/ as 0oo20indin1& typesettin1&

en1ravin1& p/oto-en1ravin1& and

electrotypin1 and t/e pu0lication of

ne5spapers& 0oo2s& and periodicals++++++++ ,, 3 ,,

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4;+* ?anufacture of C/emicals and Allied Products

Includes assets used to manufacture 0asic

or1anic and inor1anic c/emicals c/emical

products to 0e used in furt/er manufacture&

suc/ as synt/etic fi0ers and plastics

materials and finis/ed c/emical products+

Includes assets used to furt/er process

man-made fi0ers& to manufacture plastic

film& and to manufacture non5oven fa0rics&

5/en suc/ assets are located in t/e same

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plant in an inte1rated operation 5it/

c/emical products producin1 assets+ Also

includes assets used to manufacture

p/oto1rap/ic supplies& suc/ as film&

p/oto1rap/ic paper& sensitied p/oto1rap/ic

paper& and developin1 c/emicals+ Includes

all land improvements associated 5it/ plant

site or production processes& suc/ as

effluent ponds and canals& provided suc/

land improvements are deprecia0le 0ut does

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not include 0uildin1s and structural


of t/e re1ulations+ Does not include assets

used in t/e manufacture of finis/ed ru00er

and plastic products or in t/e production

of natural 1as products& 0utane& propane&

and 0yproducts of natural 1as production

plants++++++++++++++++++++++++++++++++++++ =+9 9

=+9

6*+, ?anufacture of u00er Products

Includes assets used for t/e production of

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products from natural& synt/etic& or

reclaimed ru00er& 1utta perc/a& 0alata& or

1utta sia2& suc/ as tires& tu0es& ru00er

foot5ear& mec/anical ru00er 1oods& /eels and

soles& floorin1& and ru00er sundries and in

t/e recappin1& retreadin1& and re0uildin1

of tires++++++++++++++++++++++++++++++++++ ,> 3

,>

6*+,, ?anufacture of u00er Products--Special

"ools and Devices

Includes assets defined as special tools&

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suc/ as 7i1s& dies& mandrels& molds& lasts&

patterns& specialty containers& pallets&

s/ells and tire molds& and accessory parts

suc/ as rin1s and insert plates used in

activities as defined in class 6*+,+ Does

not include tire 0uildin1 drums and

accessory parts and 1eneral purpose small

tools suc/ as 5renc/es and drills& 0ot/

po5er and /and-driven& and ot/er 1eneral

purpose e.uipment suc/ as conveyors and

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transfer e.uipment+++++++++++++++++++++++++ > 6 >

6*+4 ?anufacture of Finis/ed Plastic Products

Includes assets used in t/e manufacture of

plastics products and t/e moldin1 of

primary plastics for t/e trade+ Does not

include assets used in t/e manufacture of

0asic plastics materials nor t/e

manufacture of p/ono1rap/ records+++++++++ ,, 3 ,,

6*+4, ?anufacture of Finis/ed Plastic Products--

Special "ools

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suc/ as 7i1s& dies& fitures& molds&

patterns& 1au1es& and specialty transfer

and s/ippin1 devices& used in activities as

defined in class 6*+4+ Special tools are

specifically desi1ned for t/e production or

processin1 of particular parts and /ave no

si1nificant utilitarian value and cannot 0e

adapted to furt/er or different use after

c/an1es or improvements are made in t/e

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model desi1n of t/e particular part

produced 0y t/e special tools+ Does not

include 1eneral purpose small tools suc/ as

5renc/es and drills& 0ot/ /and and po5er-

driven& and ot/er 1eneral purpose e.uipment

suc/ as conveyors& transfer e.uipment& and

materials /andlin1 devices++++++++++++++++ 6+9 66+9

6,+* ?anufacture of Leat/er and Leat/er Products

Includes assets used in t/e tannin1&

curryin1& and finis/in1 of /ides and s2ins

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t/e processin1 of fur pelts and t/e

manufacture of finis/ed leat/er products&

suc/ as foot5ear& 0eltin1& apparel& and

lu11a1e+++++++++++++++++++++++++++++++++++ ,, 3 ,,

ecovery Periods

(in years)

Alter-

General native

Depre-


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ciation


System

64+, ?anufacture of Glass Products


flat& 0lo5n& or pressed products of 1lass&

suc/ as float and 5indo5 1lass& 1lass

containers& 1lass5are and fi0er1lass+ Does

not include assets used in t/e manufacture

of lenses+++++++++++++++++++++++++++++++++ ,> 3 ,>

64+,, ?anufacture of Glass Products--Special

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"ools

Includes assets defined as special tools

suc/ as molds& patterns& pallets& and

specialty transfer and s/ippin1 devices

suc/ as steel rac2s to transport automotive

1lass& used in activities as defined in

class 64+,+ Special tools are specifically

desi1ned for t/e production or processin1

of particular parts and /ave no si1nificant

utilitarian value and cannot 0e adapted to

8/12/2019 Rev. Proc. 87-56 - 5


furt/er or different use after c/an1es or

improvements are made in t/e model desi1n

of t/e particular part produced 0y t/e

special tools+ Does not include 1eneral

purpose small tools suc/ as 5renc/es and

drills& 0ot/ /and and po5er driven& and


conveyors& transfer e.uipment& and

materials /andlin1 devices++++++++++++++++ 4+9 6

4+9

64+4 ?anufacture of Cement

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cement& 0ut does not include any assets

used in t/e manufacture of concrete and

concrete products nor in any minin1 or

etraction process++++++++++++++++++++++++ 4* ,9 4*

64+6 ?anufacture of t/er Stone and Clay Products


products from materials in t/e form of clay

and stone& suc/ as 0ric2& tile& and pipe

pottery and related products& suc/ as

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vitreous-c/ina& plum0in1 fitures&

eart/en5are and ceramic insulatin1

materials and also includes assets used

in manufacture of concrete and concrete

products+ Does not include assets used in

any minin1 or etraction processes++++++++ ,9 3 ,9

66+4 ?anufacture of Primary $onferrous ?etals

Includes assets used in t/e smeltin1&

refinin1& and electrolysis of nonferrous

metals from ore& pi1& or scrap& t/e rollin1&

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fitures& 1au1es& and dra5in1s concernin1

suc/ special tools used in t/e activities

as defined in class 66+4& ?anufacture of

Primary $onferrous ?etals+ Special tools

are specifically desi1ned for t/e production

or processin1 of particular products or

parts and /ave no si1nificant utilitarian

value and cannot 0e adapted to furt/er or

different use after c/an1es or improvements

are made in t/e model desi1n of t/e

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particular part produced 0y t/e special

tools+ Does not include 1eneral purpose

small tools suc/ as 5renc/es and drills&

0ot/ /and and po5er-driven& and ot/er

1eneral purpose e.uipment suc/ as conveyors&

transfer e.uipment& and materials /andlin1

devices+ olls& mandrels and refractories

are not included in class 66+4, 0ut are

included in class 66+4++++++++++++++++++++ 8+9 9 8+9

66+6 ?anufacture of Foundry Products

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Includes assets used in t/e castin1 of iron

and steel& includin1 related operations suc/

as moldin1 and corema2in1+ Also includes

assets used in t/e finis/in1 of castin1s and

patternma2in1 5/en performed at t/e foundry&

all special tools and related land

improvements++++++++++++++++++++++++++++++ ,> 3 ,>

66+> ?anufacture of Primary Steel ?ill Products

Includes assets used in t/e smeltin1&

reduction& and refinin1 of iron and steel

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from ore& pi1& or scrap t/e rollin1&

dra5in1 and alloyin1 of steel t/e

manufacture of nails& spi2es& structural

s/apes& tu0in1& 5ire& and ca0le+ Includes

assets used 0y steel service centers&

ferrous metal for1es& and assets used in

co2e production& re1ardless of o5ners/ip+

Also includes related land improvements and

all special tools used in t/e a0ove

activities++++++++++++++++++++++++++++++++ ,9 3 ,9

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6>+* ?anufacture of Fa0ricated ?etal Products

Special "ools


metal cans& tin5are& fa0ricated structural

metal products& metal stampin1s& and ot/er

ferrous and nonferrous metal and 5ire

products not else5/ere classified+ Does

not include assets used to manufacture

non-electric /eatin1 apparatus++++++++++++ ,4 3 ,4

6>+*, ?anufacturer of Fa0ricated ?etal Products

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Special "ools


suc/ as dies& 7i1s& molds& patterns&

fitures& 1au1es& and returna0le containers

and dra5in1s concernin1 suc/ special tools

used in t/e activities as defined in class

6>+*+ Special tools are specifically


of particular mac/ine components& products&

or parts& and /ave no si1nificant

utilitarian value and cannot 0e adapted to

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furt/er or different use after c/an1es or

improvements are made in t/e model desi1n

of t/e particular part produced 0y t/e

special tools+ Does not include 1eneral

purpose small tools suc/ as 5renc/es and

drills& 0ot/ /and and po5er-driven& and


conveyors& transfer e.uipment& and

materials /andlin1 devices+++++++++++++++++ 6 6 6

69+* ?anufacture of Electrical and $on-Electrical

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?ac/inery and t/er ?ec/anical Products

Includes assets used to manufacture or

re0uild finis/ed mac/inery and e.uipment and

replacement parts t/ereof suc/ as mac/ine

tools& 1eneral industrial and special

industry mac/inery& electrical po5er

1eneration& transmission& and distri0ution

systems& space /eatin1& coolin1& and

refri1eration systems& commercial and /ome

appliances& farm and 1arden mac/inery&

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construction mac/inery& minin1 and oil

field mac/inery& internal com0ustion en1ines

(ecept t/ose else5/ere classified)&

tur0ines (ecept t/ose t/at po5er air0orne

ve/icles)& 0atteries& lamps and li1/tin1

fitures& car0on and 1rap/ite products& and

electromec/anical and mec/anical products

includin1 0usiness mac/ines& instruments&

5atc/es and cloc2s& vendin1 and amusement

mac/ines& p/oto1rap/ic e.uipment& medical

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and dental e.uipment and appliances& and

op/t/almic 1oods+ Includes assets used 0y

manufacturers or re0uilders of suc/

finis/ed mac/inery and e.uipment in

activities else5/ere classified suc/ as t/e

manufacture of castin1s& for1in1s& ru00er

and plastic products& electronic

su0assem0lies or ot/er manufacturin1

activities if t/e interim products are used

0y t/e same manufacturer primarily in t/e

manufacture& assem0ly& or re0uildin1 of suc/

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finis/ed mac/inery and e.uipment+ Does not

include assets used in minin1& assets used

in t/e manufacture of primary ferrous and

nonferrous metals& assets included in class

**+ ,, t/rou1/ **+> and assets else5/ere

classified++++++++++++++++++++++++++++++++ ,* 3 ,*

68+* ?anufacture of Electronic Components&

Products& and Systems


electronic communication& computation&

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instrumentation and control systems&

includin1 air0orne applications also

includes assets used in t/e manufacture of

electronic products suc/ as fre.uency and

amplitude modulated transmitters and

receivers& electronic s5itc/in1 stations&

television cameras& video recorders& record

players and tape recorders& computers and

computer perip/eral mac/ines& and electronic

instruments& 5atc/es& and cloc2s also

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includes assets used in t/e manufacture of

components& provided t/eir primary use is

in products and systems defined a0ove suc/

as electron tu0es& capacitors& coils&

resistors& printed circuit su0strates&

s5itc/es& /arness ca0les& lasers& fi0er

optic devices& and ma1netic media devices+

Specifically ecludes assets used to

manufacture electronic products and

components& p/otocopiers& type5riters&

posta1e meters and ot/er electromec/anical

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and mec/anical 0usiness mac/ines and

instruments t/at are else5/ere classified+

Does not include semiconductor manufacturin1

e.uipment included in class 68+,+++++++++++ 8 9 8

68+, Any Semi-conductor ?anufacturin1 E.uipment 9 9 9

63+,, ?anufacture of ?otor %e/icles

Includes assets used in t/e manufacture and

assem0ly of finis/ed automo0iles& truc2s&

trailers& motor /omes& and 0uses+ Does not

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include assets used in minin1& printin1 and

pu0lis/in1& production of primary metals&

electricity& or steam& or t/e manufacture

of 1lass& industrial c/emicals& 0atteries&

or ru00er products& 5/ic/ are classified

else5/ere+ Includes assets used in

manufacturin1 activities else5/ere

classified ot/er t/an t/ose ecluded a0ove&

5/ere suc/ activities are incidental to and

an inte1ral part of t/e manufacture and

assem0ly of finis/ed motor ve/icles suc/ as

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t/e manufacture of parts and su0assem0lies

of fa0ricated metal products& electrical

e.uipment& tetiles& plastics& leat/er& and

foundry and for1in1 operations+ Does not

include any assets not classified in

manufacturin1 activity classes& e+1+& does

not include assets classified in asset

classes **+,, t/rou1/ **+>+ Activities 5ill

0e considered incidental to t/e manufacture

and assem0ly of finis/ed motor ve/icles only

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if 39 percent or more of t/e value of t/e

profits produced under one roof are used for

t/e manufacture and assem0ly of finis/ed

motor ve/icles+ Parts t/at are produced as

a normal replacement stoc2 complement in

connection 5it/ t/e manufacture and assem0ly

of finis/ed motor ve/icles are considered

used for t/e manufacture and assem0ly of

finis/ed motor ve/icles+ Do not include

assets used in t/e manufacture of component

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parts if t/ese assets are used 0y tapayers

not en1a1ed in t/e assem0ly of finis/ed

motor ve/icles++++++++++++++++++++++++++++ ,4 3

,4

63+,4 ?anufacture of ?otor %e/icles-Special "ools


suc/ as 7i1s& dies& fitures& molds&

patterns& 1au1es& and specialty transfer and

s/ippin1 devices& o5ned 0y manufacturers of

finis/ed motor ve/icles and used in

.ualified activities as defined in class

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63+,,+ Special tools are specifically


of particular motor ve/icle components and

/ave no si1nificant utilitarian value& and

cannot 0e adapted to furt/er or different

use& after c/an1es or improvements are made

in t/e model desi1n of t/e particular part



5renc/es and drills& 0ot/ /and and

po5erdriven& and ot/er 1eneral purpose

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1uidance& control& radiation& computation&

test& navi1ation& and communication

e.uipment or t/e components t/ereof+++++++ ,* 3 ,*

63+6, S/ip and !oat !uildin1 ?ac/inery and

E.uipment


repair of s/ips& 0oats& caissons& marine

drillin1 ri1s& and special fa0rications not

included in asset classes 63+64 and 63+66+

Specifically includes all manufacturin1 and

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repairin1 mac/inery and e.uipment& includin1

mac/inery and e.uipment used in t/e

operation of assets included in asset class

63+64+ Ecludes 0uildin1s and t/eir

structural components+++++++++++++++++++++ ,4 3 ,4

63+64 S/ip and !oat !uildin1 Dry Doc2s and Land

Improvements


repair of s/ips& 0oats& caissons& marine

drillin1 ri1s& and special fa0rications not

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included in asset classes 63+6, and 63+66+

Specifically includes floatin1 and fied

dry doc2s& s/ip 0asins& 1ravin1 doc2s&

s/ip5ays& piers& and all ot/er land

improvements suc/ as 5ater& se5er& and

electric systems+ Ecludes 0uildin1s and

t/eir structural components+++++++++++++++ ,8 ,* ,8

63+66 S/ip and !oat !uildin1-Special "ools


suc/ as dies& 7i1s& molds& patterns&

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fitures& 1au1es& and dra5in1s concernin1

suc/ special tools used in t/e activities

defined in classes 63+6, and 63+64+ Special

tools are specifically desi1ned for t/e

production or processin1 of particular

mac/ine components& products& or parts& and

/ave no si1nificant utilitarian value and

cannot 0e adapted to furt/er or different

use after c/an1es or improvements are made

in t/e model desi1n of t/e particular part


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5renc/es and drills& 0ot/ /and and po5er-

driven& and ot/er 1eneral purpose e.uipment

suc/ as conveyors& transfer e.uipment& and

materials /andlin1 devices++++++++++++++++ 8+9 9 8+9

ecovery Periods

(in years)

Alter-

General native

8/12/2019 Rev. Proc. 87-56 - 5


Depre-


ciation


System

63+>, ?anufacture of Locomotives

Includes assets used in 0uildin1 or

re0uildin1 railroad locomotives (includin1

minin1 and industrial locomotives)+ Does not

include assets of railroad transportation

companies or assets of companies 5/ic/

manufacture components of locomotives 0ut

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do not manufacture finis/ed locomotives+++ ,,+9 3 ,,+9

63+>4 ?anufacture of ailroad Cars

Includes assets used in 0uildin1 or

re0uildin1 railroad frei1/t or passen1er

cars (includin1 rail transit cars)+ Does

not include assets of railroad

transportation companies or assets of

companies 5/ic/ manufacture components of

railroad cars 0ut do not manufacture

finis/ed railroad cars++++++++++++++++++++ ,4 3 ,4

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6=+* ?anufacture of At/letic& e5elry and t/er

Goods


7e5elry musical instruments toys and

sportin1 1oods motion picture and

television films and tapes and pens&

pencils& office and art supplies& 0rooms&

0rus/es& cas2ets& etc+++++++++++++++++++++ ,4 3 ,4

ailroad "ransportation

Classes 5it/ t/e prefi >* include t/e

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assets identified 0elo5 t/at are used in

t/e commercial and contract carryin1 of

passen1ers and frei1/t 0y rail+ Assets

of electrified railroads 5ill 0e classified

in a manner correspondin1 to t/at set fort/

0elo5 for railroads not independently

operated as electric lines+ Ecludes t/e

assets included in classes 5it/ t/e prefi

0e1innin1 **+, and **+4 a0ove& and also

ecludes any non-deprecia0le assets included

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in Interstate Commerce Commission accounts

enumerated for t/is class+

>*+, ailroad ?ac/inery and E.uipment

Includes assets classified in t/e follo5in1

Interstate Commerce Commission accounts

oad5ay accounts

(,8) Station and office 0uildin1s (frei1/t

/andlin1 mac/inery and e.uipment only)

(49) "FCCFC terminals (frei1/t /andlin1

mac/inery and e.uipment only)

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(48) Communication systems

(43) Si1nals and interloc2ers

(63) oad5ay mac/ines

(>>) S/op mac/inery

E.uipment Accounts

(94) Locomotives

(96) Frei1/t train cars

(9>) Passen1er train cars

(93) @or2 e.uipment+++++++++++++++++++++ ,> 3 ,>

>*+4 ailroad Structures and Similar Improvements

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Interstate Commerce Commission road accounts

(8) !rid1es& trestles& and culverts

(3) Elevated structures

(,6) Fences& sno5s/eds& and si1ns

(,8) Station and office 0uildin1s (stations

and ot/er operatin1 structures only)

(,3) oad5ay 0uildin1s

(,;) @ater stations

(,=) Fuel stations

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(4*) S/ops and en1ine/ouses

(49) "FCCFC terminals (operatin1

structures only)

(6,) Po5er transmission systems

(69) ?iscellaneous structures

(6=) Pu0lic improvements construction+++ 6* 4* 6*

>*+6 ailroad @/arves and Doc2s


Interstate Commerce accounts

(46) @/arves and doc2s

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(4>) Coal and ore 5/arves+++++++++++++++ 4* ,9 4*

>*+> ailroad "rac2++++++++++++++++++++++++++++ ,* 3 ,*

>*+9, ailroad <ydraulic Electric Generatin1

E.uipment+++++++++++++++++++++++++++++++++ 9* 4* 9*

>*+94 ailroad $uclear Electric Generatin1

E.uipment+++++++++++++++++++++++++++++++++ 4* ,9 4*

>*+96 ailroad Steam Electric Generatin1

E.uipment+++++++++++++++++++++++++++++++++ 4; 4* 4;

>*+9> ailroad Steam& Compressed Air& and t/er

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Po5er Plant E.uipment+++++++++++++++++++++ 4; 4* 4;

>,+* ?otor "ransport-Passen1ers

Includes assets used in t/e ur0an and

interur0an commercial and contract carryin1

of passen1ers 0y road& ecept t/e

transportation assets included in classes

5it/ t/e prefi **+4+++++++++++++++++++++++ ; 9 ;

>4+* ?otor "ransport-Frei1/t

Includes assets used in t/e commercial and

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contract carryin1 of frei1/t 0y road& ecept

t/e transportation assets included in

classes 5it/ t/e prefi **+4+++++++++++++++ ; 9 ;

>>+* @ater "ransportation

Includes assets used in t/e commercial and

contract carryin1 of frei1/t and passen1ers

0y 5ater ecept t/e transportation assets

included in classes 5it/ t/e prefi **+4+

Includes all related land improvements++++ 4* ,9 4*

>9+* Air "ransport

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Includes assets (ecept /elicopters) used

in commercial and contract carryin1 of

passen1ers and frei1/t 0y air+ For purposes

of section ,+,83(a)-,,(d)(4)(iv)(a) of t/e

re1ulations& ependitures for repair&

maintenance& re/a0ilitation& or

improvementH s/all consist of direct

maintenance epenses (irrespective of

air5ort/iness provisions or c/ar1es) as

defined 0y Civil Aeronautics !oard uniform

8/12/2019 Rev. Proc. 87-56 - 5


accounts 94**& maintenance 0urden (eclusive

of epenses pertainin1 to maintenance

0uildin1s and improvements) as defined 0y

Civil Aeronautics !oard uniform accounts

96**& and ependitures 5/ic/ are not

ecluded additionsH as defined in

section ,+,83(a)-,,(d)(4)(vi) of t/e

re1ulations and 5/ic/ 5ould 0e c/ar1ed to

property and e.uipment accounts in t/e

Civil Aeronautics !oard uniform system

of accounts+++++++++++++++++++++++++++++++ ,4 3 ,4

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>9+, Air "ransport (restricted)

Includes eac/ asset descri0ed in t/e

description of class >9+* 5/ic/ 5as /eld

0y t/e tapayer on April ,9& ,=38& or is

ac.uired 0y t/e tapayer pursuant to a

contract 5/ic/ 5as& on April ,9& ,=38& and

at all times t/ereafter& 0indin1 on t/e

tapayer+ "/is criterion of classification

0ased on 0indin1 contract concept is to 0e

applied in t/e same manner as under t/e

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1eneral rules epressed in section >=(0)(,)&

(>)& (9) and (;) of t/e Code (as in effect

prior to its repeal 0y t/e evenue Act of

,=3;& section 6,4(c)(,)& (d)& ,=3;-6

C+!+ ,& 8*)++++++++++++++++++++++++++++++++ 8 9 8

>8+* Pipeline "ransportation

Includes assets used in t/e private&

commercial& and contract carryin1 of

petroleum& 1as and ot/er products 0y means

of pipes and conveyors+ "/e trun2 lines and

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related stora1e facilities of inte1rated

petroleum and natural 1as producers are

included in t/is class+ Ecludes initial

clearin1 and 1radin1 land improvements as

specified in ev+ ul+ 34->*6& ,=34-4 C+!+

,*4& 0ut includes all ot/er related land

improvements++++++++++++++++++++++++++++++ 44 ,9 44

"elep/one Communications

Includes t/e assets identified 0elo5 and

t/at are used in t/e provision of commercial

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and contract telep/onic services suc/ as

>;+,, "elep/one Central ffice !uildin1s

Includes assets intended to /ouse central

office e.uipment& as defined in Federal

Communications Commission Part 6, Account

$o+ 4,4 5/et/er section ,4>9 or section

,49* property+++++++++++++++++++++++++++++ >9 4* >9

>;+,4 "elep/one Central ffice E.uipment

Includes central office s5itc/in1 and

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related e.uipment as defined in Federal


$o+ 44,+

Does not include computer-0ased telep/one

central office s5itc/in1 e.uipment included

in class >;+,4,+ Does not include private

0ranc/ ec/an1e (P!') e.uipment+++++++++++ ,; ,* ,;

>;+,4, Computer-0ased "elep/one Central ffice

S5itc/in1 E.uipment

Includes e.uipment 5/ose functions are t/ose

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$os+ 46,& 464& and 46>++++++++++++++++++++ ,* 3 :,* :

: Property descri0ed in asset 1uideline class >;+,6 5/ic/ is .ualified

tec/nolo1ical e.uipment as defined in section ,8;(i)(4) is assi1ned a

9-year recovery period for 0ot/ t/e 1eneral and alternative depreciation

systems+

>;+,> "elep/one Distri0ution Plant

Includes suc/ assets as pole lines& ca0le&

aerial 5ire& under1round conduits& and

compara0le e.uipment& and related land

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improvements as defined in Federal


$os+ 4>,& 4>4+,& 4>4+4& 4>4+6& 4>4+>&

4>6& and 4>>++++++++++++++++++++++++++++++ 4> ,9 4>

>;+4 adio and "elevision !roadcastin1s

Includes assets used in radio and television

0roadcastin1& ecept transmittin1 to5ers+++ 8 9 8

"ele1rap/& cean Ca0le& and Satellite

Communications ("CSC) includes

8/12/2019 Rev. Proc. 87-56 - 5


communications-related assets used to

provide domestic and international radio-

tele1rap/& 5ire-tele1rap/& ocean-ca0le& and

satellite communications services also

includes related land improvements+ If

property descri0ed in Classes >;+6, is >;+>9

compara0le to telep/one distri0ution plant

descri0ed in Class >;+,> and used for 4-5ay

ec/an1e of voice and data communication

5/ic/ is t/e e.uivalent of telep/one

communication& suc/ property is assi1ned a

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assets 5/en t/ey are installed on

customers premises++++++++++++++++++++++++ ,= ,* ,=

>;+64 "CSC-<i1/ Fre.uency adio and ?icro5ave

Systems

Includes assets suc/ as transmitters and

receivers& antenna supportin1 structures&

antennas& transmission lines from e.uipment

to antenna& transmitter coolin1 systems&

and control and amplification e.uipment+

Does not include ca0le and lon1-line

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systems+++++++++++++++++++++++++++++++++++ ,6 3 ,6

>;+66 "CSC-Ca0le and Lon1-line Systems

Includes assets suc/ as transmission lines&

pole lines& ocean ca0les& 0uried ca0le and

conduit& repeaters& repeater stations& and

ot/er related assets+ Does not include /i1/

fre.uency radio or micro5ave systems++++++ 48+9 4*

48+9

>;+6> "CSC-Central ffice Control E.uipment

Includes assets for 1eneral control&

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s5itc/in1& and monitorin1 of communications

si1nals includin1 electromec/anical

s5itc/in1 and c/annelin1 apparatus&

multiplein1 e.uipment& patc/in1 and

monitorin1 facilities& in-/ouse ca0lin1&

teleprinter e.uipment& and associated site

improvements++++++++++++++++++++++++++++++ ,8+9 ,*

,8+9

>;+69 "CSC-Computeried S5itc/in1& C/annelin1&

and Associated Control E.uipment

Includes central office s5itc/in1 computers&

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interfacin1 computers& ot/er associated

specialied control e.uipment& and site

improvements++++++++++++++++++++++++++++++ ,*+9 3

,*+9

>;+68 "CSC-Satellite Ground Se1ment Property

Includes assets suc/ as fied eart/

station e.uipment& antennas& satellite

communications e.uipment& and interface

e.uipment used in satellite communications+

Does not include 1eneral purpose e.uipment

or e.uipment used in satellite space

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se1ment property+++++++++++++++++++++++++ ,* 3 ,*

>;+63 "CSC-Satellite Space Se1ment Property

Includes satellites and e.uipment used for

telemetry& trac2in1& control& and monitorin1

5/en used in satellite communications++++++ ; 9 ;

>;+6; "CSC-E.uipment Installed on Customers

Premises

Includes assets installed on customers

premises& suc/ as computers& terminal

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e.uipment& po5er 1eneration and distri0ution

systems& private s5itc/in1 center&

teleprinters& facsimile e.uipment& and

ot/er associated and related e.uipment++++ ,* 3 ,*

ecovery Periods

(in years)

Alter-

General native

Depre-


ciation

8/12/2019 Rev. Proc. 87-56 - 5



System

>;+6= "CSC-Support and Service E.uipment

Includes assets used to support 0ut not

en1a1e in communications+ Includes store&

5are/ouse and s/op tools& and test and

la0oratory assets+++++++++++++++++++++++++ ,6+9 3

,6+9

Ca0le "elevision (CA"%)

Includes communications-related assets used

to provide ca0le television community

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antenna television services)+ Does not

include assets used to provide su0scri0ers

5it/ t5o-5ay communications services+

>;+>, CA"%-<eadend

Includes assets suc/ as to5ers& antennas&

preamplifiers& converters& modulation

e.uipment& and pro1ram non-duplication

systems+ Does not include /eadend 0uildin1s

and pro1ram ori1ination assets++++++++++++ ,, 3 ,,

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>;+>4 CA"%-Su0scri0er Connection and Distri0ution

Systems

Includes assets suc/ as trun2 and feeder

ca0le& connectin1 /ard5are& amplifiers&

po5er e.uipment& passive devices&

directional taps& pedestals& pressure taps&

drop ca0les& matc/in1 transformers& multiple

set connector e.uipment& and converters+++ ,* 3 ,*

>;+>6 CA"%-Pro1ram ri1ination

Includes assets suc/ as cameras& film

8/12/2019 Rev. Proc. 87-56 - 5


c/ains& video tape recorders& li1/tin1&

and remote location e.uipment ecludin1

ve/icles+ Does not include 0uildin1s and

t/eir structural components++++++++++++++++ = 9 =

>;+>> CA"%-Service and "est

Includes assets suc/ as oscilloscopes&

field stren1t/ meters& spectrum analyers&

and ca0le testin1 e.uipment& 0ut does not

include ve/icles++++++++++++++++++++++++++ ;+9 9 ;+9

>;+>9 CA"%-?icro5ave Systems

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Includes assets suc/ as to5ers& antennas&

transmittin1 and receivin1 e.uipment& and

0road 0and micro5ave assets if used in t/e

provision of ca0le television services+

Does not include assets used in t/e

provision of common carrier services++++++ =+9 9 =+9

Electric& Gas& @ater and Steam& #tility

Services

Includes assets used in t/e production&

transmission and distri0ution of

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electricity& 1as& steam& or 5ater for sale

includin1 related land improvements+

>=+,, Electric #tility <ydraulic Production Plant

Includes assets used in t/e /ydraulic po5er

production of electricity for sale& includin1

related land improvements& suc/ as dams&

flumes& canals& and 5ater5ays+++++++++++++ 9* 4* 9*

>=+,4 Electric #tility $uclear Production Plant

Includes assets used in t/e nuclear po5er

production and electricity for sale and

8/12/2019 Rev. Proc. 87-56 - 5


related land improvements+ Does not

include nuclear fuel assem0lies+++++++++++ 4* ,9 4*

>=+,4, Electric #tility $uclear Fuel Assem0lies

Includes initial core and replacement core

nuclear fuel assem0lies (i+e+& t/e composite

of fa0ricated nuclear fuel and container)

5/en used in a 0oilin1 5ater& pressuried

5ater& or /i1/ temperature 1as reactor used

in t/e production of electricity+ Does not

include nuclear fuel assem0lies used in

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0reeder reactors+++++++++++++++++++++++++++ 9 9 9

>=+,6 Electric #tility Steam Production Plant

Includes assets used in t/e steam po5er

production of electricity for sale&

com0ustion tur0ines operated in a com0ined

cycle 5it/ a conventional steam unit and

related land improvements+ Also includes

pac2a1e 0oilers& electric 1enerators and

related assets suc/ as electricity and

steam distri0ution systems as used 0y a

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5aste reduction and resource recovery plant

if t/e steam or electricity is normally

for sale to ot/ers++++++++++++++++++++++++ 4; 4* 4;

>=+,> Electric #tility "ransmission and

Distri0ution Plant

Includes assets used in t/e transmission

and distri0ution of electricity for sale and

related land improvements+ Ecludes initial

clearin1 and 1radin1 land improvements as

specified in ev+ ul+ 34->*6& ,=34-4

8/12/2019 Rev. Proc. 87-56 - 5


C+!+ ,*4++++++++++++++++++++++++++++++++++ 6* 4* 6*

>=+,9 Electric #tility Com0ustion "ur0ine

Production Plant


electricity for sale 0y t/e use of suc/

prime movers as 7et en1ines& com0ustion

tur0ines& diesel en1ines& 1asoline en1ines&

and ot/er internal com0ustion en1ines& t/eir

associated po5er tur0ines andor 1enerators&

and related land improvements+ Does not

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include com0ustion tur0ines operated in

a com0ined cycle 5it/ a conventional

steam unit++++++++++++++++++++++++++++++++ 4* ,9 4*

>=+4, Gas #tility Distri0ution Facilities

Includes 1as 5ater /eaters and 1as

conversion e.uipment installed 0y utility

on customers premises on a rental 0asis+++ 69 4* 69

>=+44, Gas #tility ?anufactured Gas Production

Plants

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Includes assets used in t/e manufacture

of 1as /avin1 c/emical andor p/ysical

properties 5/ic/ do not permit complete

interc/an1ea0ility 5it/ domestic natural

1as+ Does not include 1as producin1

systems and related systems used in 5aste

reduction and resource recovery plants

5/ic/ are else5/ere classified++++++++++++ 6* 4* 6*

>=+444 Gas #tility Su0stitute $atural Gas (S$G)

Production Plant (nap/t/a or li1/ter

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/ydrocar0on feedstoc2s)

Includes assets used in t/e catalytic

conversion of feedstoc2s or nap/t/a or

li1/ter /ydrocar0ons to a 1aseous fuel

5/ic/ is completely interc/an1ea0le 5it/

domestic natural 1as++++++++++++++++++++++ ,> 3 ,>

>=+446 Su0stitute $atural Gas-Coal Gasification


production of pipeline .uality 1as from coal

usin1 t/e 0asic Lur1i process 5it/ advanced

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met/anation+ Includes all process plant

e.uipment and structures used in t/is coal

1asification process and all utility assets

suc/ as coolin1 systems& 5ater supply and

treatment facilities& and assets used in t/e

production and distri0ution of electricity

and steam for use 0y t/e tapayer in a

1asification plant and attendant coal minin1

site processes 0ut not for assets used in t/e

production and distri0ution of electricity

and steam for sale to ot/ers+ Also includes

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all ot/er related land improvements+ Does not

include assets used in t/e direct minin1 and

treatment of coal prior to t/e 1asification

process itself++++++++++++++++++++++++++++ ,; ,* ,;

>=+46 $atural Gas Production Plant++++++++++++++ ,> 3 ,>

>=+4> Gas #tility "run2 Pipelines and elated

Stora1e Facilities

Ecludin1 initial clearin1 and 1radin1

land improvements as specified in

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ev+ ul+ 34->*6++++++++++++++++++++++++++ 44 ,9 44

>=+49 Li.uefied $atural Gas Plant

Includes assets used in t/e li.uefaction&

stora1e& and re1asification of natural 1as

includin1 loadin1 and unloadin1 connections&

instrumentation e.uipment and controls&

pumps& vaporiers and odoriers& tan2s& and

related land improvements+ Also includes

pipeline interconnections 5it/ 1as

transmission lines and distri0ution systems

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and marine terminal facilities++++++++++++ 44 ,9 44

>=+6 @ater #tilities

Includes assets used in t/e 1at/erin1&

treatment& and commercial distri0ution

of 5ater++++++++++++++++++++++++++++++++++ 9* 4* 9*

>=+> Central Steam #tility Production and

Distri0ution

Includes assets used in t/e production and

distri0ution of steam for sale+ Does not

include assets used in 5aste reduction and

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resource recovery plants 5/ic/ are

else5/ere classified++++++++++++++++++++++ 4; 4* 4;

>=+9 @aste eduction and esource ecovery Plants

Includes assets used in t/e conversion of

refuse or ot/er solid 5aste or 0iomass to

/eat or to a solid& li.uid& or 1aseous fuel+

Also includes all process plant e.uipment

and structures at t/e site used to receive&

/andle& collect& and process refuse or ot/er

solid 5aste or 0iomass to a solid& li.uid&

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or 1aseous fuel or to /andle and 0urn refuse

or ot/er solid 5aste or 0iomass in a

5ater5all com0ustion system& oil or 1as

pyrolysis system& or refuse derived fuel

system to create /ot 5ater& 1as& steam and

electricity+ Includes material recovery and

support assets used in refuse or solid

refuse or solid 5aste receivin1& collectin1&

/andlin1& sortin1& s/reddin1& classifyin1&

and separation systems+ Does not include any

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pac2a1e 0oilers& or electric 1enerators and

related assets suc/ as electricity& /ot

5ater& steam and manufactured 1as production

plants classified in classes **+>& >=+,6&

>=+44,& and >=+>+ Does include& /o5ever& all

ot/er utilities suc/ as 5ater supply and

treatment facilities& as/ /andlin1 and ot/er

related land improvements of a 5aste

reduction and resource recovery plant+++++ ,* 3 ,*

9*+ ?unicipal @aste5ater "reatment Plant++++++ 4> ,9 4>

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9,+ ?unicipal Se5er+++++++++++++++++++++++++++ 9* 4* 9*

93+* Distri0utive "rades and Services

Includes assets used in 5/olesale and

retail trade& and personal and professional

services+ Includes section ,4>9 assets used

in mar2etin1 petroleum and petroleum

products+++++++++++++++++++++++++++++++++++ = 9

= :

: Any /i1/ tec/nolo1y medical e.uipment as defined in section ,8;(i)(4)(C)

5/ic/ is descri0ed in asset 1uideline class 93+* is assi1ned a 9-year

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recovery period for t/e alternative depreciation system+

93+, Distri0utive "rades and Services-!ill0oard&

Service Station !uildin1s and Petroleum

?ar2etin1 Land Improvements

Includes section ,49* assets& includin1

service station 0uildin1s and deprecia0le

land improvements& 5/et/er section ,4>9

property or section ,49* property& used in

t/e mar2etin1 of petroleum and petroleum

products& 0ut not includin1 any of t/ese

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facilities related to petroleum and natural

1as trun2 pipelines+ Includes car 5as/

0uildin1s and related land improvements+

Includes 0ill0oards& 5/et/er suc/ assets are

section ,4>9 property or section ,49*

property+ Ecludes all ot/er land

improvements& 0uildin1s and structural


of t/e re1ulations++++++++++++++++++++++++ 4* ,9 4*

3=+* ecreation

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Includes assets used in t/e provision of

entertainment services on payment of a fee

or admission c/ar1e& as in t/e operation of

0o5lin1 alleys& 0illiard and pool

esta0lis/ments& t/eaters& concert /alls&

and miniature 1olf courses+ Does not include

amusement and t/eme par2s and assets 5/ic/

consist primarily of specialied land

improvements or structures& suc/ as 1olf

courses& sports stadia& race trac2s& s2i

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slopes& and 0uildin1s 5/ic/ /ouse t/e

assets used in entertainment services+++++ ,* 3 ,*

;*+* "/eme and Amusement Par2s

Includes assets used in t/e provision of

rides& attractions& and amusements in

activities defined as t/eme and amusement

par2s& and includes appurtenances associated

5it/ a ride& attraction& amusement or t/eme

settin1 5it/in t/e par2 suc/ as tic2et

0oot/s& facades& s/op interiors& and props&

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special purpose structures& and 0uildin1s

ot/er t/an 5are/ouses& administration

0uildin1s& /otels& and motels+ Includes all

land improvements for or in support of par2

activities& (e+1+& par2in1 lots& side5al2s&

5ater5ays& 0rid1es& fences& landscapin1&

etc+) and support functions (e+1+& food and

0evera1e retailin1& souvenir vendin1 and

ot/er nonlod1in1 accommodations) if o5ned

0y t/e par2 and provided eclusively for t/e

0enefit of par2 patrons+ "/eme and amusement

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par2s are defined as com0inations of

amusements& rides& and attractions 5/ic/ are

Permanently situated on par2 land and open

to t/e pu0lic for t/e price of admission+

"/is 1uideline class is a composite of all

assets used in t/is industry ecept

transportation e.uipment (1eneral purpose

truc2s& cars& airplanes& etc+& 5/ic/ are

included in asset 1uideline classes 5it/ t/e

prefi **+4)& assets used in t/e provision

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of administrative services (asset classes

5it/ t/e prefi **+,)& and 5are/ouses&

administration 0uildin1s& /otels and

motels++++++++++++++++++++++++++++++++++++ ,4+9 3

,4+9

Certain Property for @/ic/ ecovery

Periods Assi1ned

A+ Personal Property @it/ $o Class Life 3 ,4

Section ,4>9 eal Property @it/ $o Class Life 3 >*

!+ Jualified "ec/nolo1ical E.uipment& as

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defined in section ,8;(i)(4)++++++++++++ : 9 9

C+ Property #sed in Connection 5it/ esearc/

and Eperimentation referred to in

section ,8;(e)(6)(!)++++++++++++++++++++ : 9 class

life

if no

life-,4

D+ Alternative Ener1y Property descri0ed in

sections >;(,)(6)(viii) or (iv)& or

section >;(,)(>) of t/e Code++++++++++++ : 9 class

life

if no

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life-,4

E+ !iomass property descri0ed in section

>;(,)(,9) and is a .ualifyin1 small

production facility 5it/in t/e meanin1 of

section 6(,3)(c) of t/e Federal Po5er Act&

(,8 #+S+C+ 3=8(,3)(C))& as in effect on

Septem0er ,& ,=;8++++++++++++++++++++++++ : 9 class

life

if no

life-,4

: "/e class life (if any) of property descri0ed in classes !& C& D& or

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E is

determined 0y reference to t/e asset 1uideline classes in t/is revenue

procedure+ If an item of property descri0ed in Para1rap/s !& C& D& or E

is

not descri0ed in any asset 1uideline class& suc/ item of property /as no

class life+

rev. proc. 87-56 - 5

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