7.6 Auto Manufacturing

Asset Classification for Cost Segregation in the Motor Vehicle Manufacturing Industry

Exhibit A

  CSI MasterFormat Division  
Asset 1995 2004 Property Type Description Asset Class/Recovery
Bollards & Guardrails – Building 3, 5 03, 05 §1250 Includes bollards (metal or concrete posts) and guardrails mounted in a concrete foundation or sturdily affixed to the ground or building so as to create a protective barrier around parts of the building such as doors, door frames, HVAC components, building corners, etc., that are vulnerable to vehicular or other traffic. They are attached in a manner reflecting that they are intended to be permanent. The purpose of the Bollard or Guardrail is to protect the building occupants, the building, or the building structural components. Nonresidential Real Property 39 Year
Bollards & Guardrails – Equipment 3, 5 03, 05 §1245 Includes bollards (metal or concrete posts) and guardrails, not permanently attached and not intended to be permanent, placed near machinery and equipment inside buildings that can be damaged by vehicular or other traffic. Bollards and guardrails withstand vehicular impact and protect personal property items such as: forklift recharging stations, hazardous material storage racks, air compressor stations, etc. The purpose of the bollards or guardrails is to protect personal property or manufacturing machinery. 37.11 Manufacture of Motor Vehicles – 7 Year
Bollards & Guardrails – Site 3, 5 03, 05 Asset class 00.3 includes both §1245 and §1250 property. Includes bollards (metal or concrete posts) and guardrails mounted in the ground or concrete to protect machinery and equipment from vehicular damage, or to prevent vehicles from trespassing onto specific areas. Placement to protect land improvements and non-building items such as signs, sign poles, flagpoles, trees, as well as inventories of autos and trucks. Bollard and guardrails are permanently attached and intended to be permanent. The purpose of the bollards or guardrails is to protect land improvements. 00.3 Land Improvement – 15 Year
Catwalks and Mezzanines – Building 3, 5 03, 05 §1250 Includes decks and walks placed in the interstitial spaces located between functional floors of a building, catwalks and mezzanines that provide access to various sections or levels of the building, or provide more than incidental working space. These are generally designed to remain in place indefinitely, are integrated into the building design, and require substantial time and effort to construct or remove. See also Stairs and Handrails – Building. Nonresidential Real Property – 39 Year
Catwalks and Mezzanines – Equipment Access 3, 5 03, 05 § 1245 Includes catwalks and mezzanines designed and constructed only to provide access to inspect, repair, or operate specific items of process machinery or equipment. See also Stairs and Handrails – Equipment Access. 37.11 Manufacture of Motor Vehicles – 7 Year
Ceilings 7 07 § 1250 Includes all interior ceilings regardless of finish or d袯r; e.g., drywall or plaster, acoustic, suspended, (including hangers, frames, grids, and tiles or panels), decorative metal or tin, plastic or decorative panels, etc. See also Climate Controlled Areas Nonresidential Real Property – 39 Year
Chilled Water System – Building 15 23, 42 § 1250 Chilled Water Systems are closed water systems that provide chilled water for cooling and comfort systems and include any and all components required for a complete and operable system including chillers, cooling towers, pumps, chilled water piping and associated piping components such as valves, fittings, hangers, supports and insulation. Building Chilled Water systems provide chilled water for building operation and maintenance purposes, such as HVAC. Nonresidential Real Property – 39 Year
Chilled Water System – Process 15 23, 42 § 1245 Process Chilled Water Systems are separate and distinct chilled water systems dedicated to process equipment or process uses and include any and all components required for a complete and operable chilled water system. To be considered a dedicated process chilled water system the chiller must be directly associated with the process equipment or process uses. 37.11 Manufacture of Motor Vehicles – 7 Year
Climate Controlled Areas – Special Equipment 13 13 §1245 Equipment that satisfies the sole justification test of Treasury Regulation section 1.48-1(e)(2) and installed to control the environment (air cleanliness, temperature, or humidity) which is essential for the operation of the manufacturing equipment of a climate controlled area such as a Paint Shop or Clean Room (including dedicated variable power outlets; electric power, air, and vacuum lines; duct work, air handling units dedicated to controlling the environment, HEPA filters, refrigeration units, steam boilers, and temperature controls that meet the sole justification test). Does not include building systems used in the operation or maintenance of the overall building or to provide general building services. See also HVAC, Process Piping Systems, & Electrical Power. 37.11 Manufacture of Motor Vehicles – 7 Year
Climate Controlled Areas – Special Rooms 13 13 § 1250 Includes structural components such as walls, floors, ceilings, wall and floor coverings, doors, lighting, and windows used to create a climate controlled area such as a Paint Shop or Clean Room. These are designed to remain in place indefinitely, require substantial time and effort to construct or remove, and are integrated into the building’s design. These areas are climate controlled for air cleanliness, temperature or humidity. Includes high speed or rapid rise doors. Nonresidential Real Property – 39 Year
Communications Equipment 16 27 §1245 Includes any office communications equipment and any related connecting cables and wiring. See also Office Furniture 00.11 Office Furniture, Fixtures, and Equipment – 7 Year
Computers 16 27 §1245 Includes computers and their peripheral equipment used in administering normal business transactions and the maintenance of business records, their retrieval and analysis. Does not include any equipment that is an integral part of other equipment that is included in other asset classes under Rev. Proc. 87-56 such as computers used primarily for process or production control, and point of sale computer systems. Also does not include equipment of a kind used primarily for amusement or entertainment of the user. 00.12 Information Systems – 5 Year
Concrete Foundations & Footings – Building 3 03 §1250 Building foundations and footings of the building. Includes excavation and backfill for building footings and foundations, but does not include site grading costs. See also Grading Nonresidential Real Property – 39 Year
Concrete Foundations & Footings – Land Improvements 3 03 Asset class 00.3 includes both §1245 and §1250 property. Foundations and footings for signs, light poles, and other land improvements (except buildings). Includes excavation, backfill, formwork, reinforcement, concrete block, and pre-cast or cast-in-place work, but does not include site grading costs. See also Grading 00.3 Land Improvement – 15 Year
Concrete Foundations & Footings – Machinery & Equipment 3 03 §1245 A foundation, pad, pit, trench, or footing for machinery or equipment that is designed to meet the specific structural support requirements of the machinery and equipment (i.e. physical weight, stability, structural stresses, vibration dampening) and that is in essence a part of the machinery or equipment.  Any function as a building component must be strictly incidental to the function as an essential part of the item of machinery or equipment that necessitated the specific design of the foundation, pad, pit, trench or footing.  Increased thickness and/or changes in floor elevation alone are not sufficient to show that the foundation, pad, or footing is so specially designed that it is in essence a part of the machinery or equipment it supports. Excavation and backfill are not included where the foundation, pad, or footing is contained within the footprint of the building. See Concrete Foundations and Footings – Buildings. Includes formwork, reinforcement, concrete block, and pre-cast or cast-in-place work. Does not include site grading costs. For excavation and grading costs, see also Grading. 37.11 Manufacture of Motor Vehicles – 7 Year
Data Handling Equipment 11 11, 40, 45 §1245 Adding and accounting machines, calculators, copiers, and duplicating machines. Excludes computers and computer peripheral equipment. See also Computers 00.13 Data Handling Equipment, except Computers – 5 Year
Doors and Door Locks 8 08 §1250 Interior and exterior doors, regardless of decoration and location, including but not limited to overhead doors, revolving doors, entrance security gates, roll-up or sliding wire mesh or steel grills and gates, high-speed or rapid-rise doors made of fabric and door hardware (such as doorknobs, closers, kick plates, hinges, locks, automatic openers, etc.).  Includes motors and closers used to operate the door and activators and controllers used to control the operation of the door. Includes computerized door locks, encoders, computers, and other associated hardware of the computerized lock system. Nonresidential Real Property – 39 Year
Electrical Distribution – Branch Circuits – Building 16 26 §1250 Includes all components of a building’s or other inherently permanent structure’s branch circuits, whether located inside or outside of the building, used in the operation or maintenance of the building or to provide general building services (such as lighting, heating, ventilation, air conditioning, etc.). Includes electrical outlets of general applicability and accessibility, and electrical wiring. Nonresidential Real Property – 39 Year
Electrical Distribution – Branch Circuits – Process M&E 16 26 §1245 Special electrical connections which are necessary to and used directly with a specific item of machinery or equipment or connections between specific items of individual machinery or equipment; such as dedicated electrical outlets, wiring, conduit, and circuit breakers by which machinery and equipment is connected to the building’s or other inherently permanent structure’s Electrical Distribution ^ system(s). Does not include electrical outlets of general applicability and accessibility. See EDS Chapter 8 of the Cost Segregation Audit Techniques Guide for allocation examples.  37.11 Manufacture of Motor Vehicles – 7 Year
Electrical Distribution – Branch Circuits – Site Lighting 16 26 Asset class 00.3 includes both §1245 and §1250 property. Electrical branch circuit to power outdoor lighting systems for sidewalks, parking or recreation areas or for sump pumps. Includes exterior power receptacles not attached to the building, or other non-process and non-building land improvement equipment. 00.3 Land Improvement – 15 Year
Electrical Distribution – Primary Power – Building 16 26 §1250 Includes the §1250 building power portion of the costs of the primary power distribution system from the point at which the NEC Nameplate rating is not more than 500 KVA, including the costs of all transformers, switchgear, conduits, feeder cables & wires, over-current protection, grounding and disconnect equipment, main distribution panels, securing and connecting equipment directly connected to the service entrance equipment to and including the primary power distribution panels, that portion being determined by all downstream electrical load usage in kilo-Volt Amps (KVA). Nonresidential Real Property – 39 Year
Electrical Distribution – Primary Power – Process M&E 16 26 1245 Includes the §1245 process machinery and equipment power portion of the costs of the primary power distribution system from the point at which the NEC Nameplate rating is not more than 500 KVA, including the costs of all transformers, switchgear, conduits, feeder cables & wires, over-current protection, grounding and disconnect equipment, main distribution panels, securing and connecting equipment directly connected to the service entrance equipment to and including the primary power distribution panels, that portion being determined by all downstream electrical load usage in kilo-Volt Amps (KVA).  37.11 Manufacture of Motor Vehicles – 7 Year
Electrical Distribution – Secondary Power – Building 16 26 §1250 Includes the §1250 building power portion of the costs of the secondary power distribution system from the point at which the NEC Nameplate rating is not more than 500 KVA, including the costs of all transformers, panels and subpanels, conduits, feeder cables & wires, over-current protection, grounding and disconnect equipment, securing and connecting equipment directly connected to the main distribution panels to the point of the branch circuit panels, that portion being determined by all downstream electrical load usage in kilo-Volt Amps (KVA).  Nonresidential Real Property – 39 Year
Electrical Distribution – Secondary Power – Process M&E 16 26 §1245 Includes the §1245 process machinery and equipment power portion of the costs of the secondary power distribution system from the point at which the NEC Nameplate rating is not more than 500 KVA that portion being determined by all downstream electrical load usage in kilo-Volt Amps (KVA). 37.11 Manufacture of Motor Vehicles – 7 Year
Electrical Distribution – Service Entrance – Building 16 26 §1250 The portion of the electrical distribution system immediately downstream from the Power Company Meter, at the electrical service entrance, if the NEC Nameplate rating is not more than 500 KVA. The portion of the costs for all transformers, switchgear, conduits, feeder cables & wires, over-current protection, grounding and disconnect equipment, securing and connecting equipment owned and maintained by the taxpayer that are located inside or outside of the buildings, whether overhead or underground, which are  directly connected to the utility company’s service and to the point of primary power system distribution, that feeds the electrical load of the §1250 building equipment as determined by all downstream electrical load usage in kilo-Volt Amps (KVA). See also Site Utilities – Building – Electrical. Nonresidential Real Property – 39 Year
Electrical Distribution – Service Entrance – Process M&E 16 26 §1245 The portion of the Electrical Distribution ^ system immediately downstream from the Power Company Meter, at the electrical service entrance, if the NEC Nameplate rating is not more than 500 KVA the portion of the costs for all transformers, switchgear, conduits, feeder cables & wires, over-current protection, grounding and disconnect equipment, securing and connecting equipment owned and maintained by the taxpayer that are located inside or outside of the buildings, whether overhead or underground, which are  directly connected to the utility company’s service and to the point of primary power system distribution, that is allocable to the process and manufacturing equipment as determined by all downstream electrical load usage in kilo-Volt Amps (KVA). 37.11 Manufacture of Motor Vehicles – 7 Year
Electrical Generation and/or Distribution – Industrial – in Excess of 500 KVA 15, 16 28, 48 §1250 / §1245 Depreciable assets, whether such assets are §1245 property or §1250 property, used in the production and/or distribution of electricity with rated total capacity in excess of 500 KVA (National Electric Code (NEC) Nameplate Rating) for use by the taxpayer in its industrial manufacturing process or plant activity and not ordinarily available for sale to others. Does not include buildings and structural components as defined in section 1.48-1(e) of the regulations. NOTE: Assets used to generate and/or distribute electricity of the type described above but of lesser rated capacity are not included in this asset class, but are elsewhere specified. NOTE: When Power Factor =1, then kilowatts = kilovolt amperes. See also Electrical Power – Steam Boiler / Piping Systems rated below 12,500 lbs/hr capacity 00.4 Industrial Steam and Electric Generation and/or Distribution Systems – 15 Year
Electrical Generation and/or Distribution – Industrial – not more than 500 KVA 15, 16 28, 48 §1245 Depreciable assets used in the production and/or distribution of electricity with rated total capacity not more than 500 KVA (National Electric Code (NEC) Nameplate Rating) for use by the taxpayer in its industrial manufacturing process or plant activity and not ordinarily available for sale to others. Does not include electrical generation or distribution equipment to power assets for the operation or maintenance of the building or to provide general building services. Does not include buildings and structural components as defined in section 1.48-1(e) of the regulations. NOTE: When a Power Factor =1, then kilowatts = kilovolt amperes. See also Electrical Power – Steam Boiler / Piping Systems rated below 12,500 lbs/hr capacity 37.11 Manufacture of Motor Vehicles – 7 Year
Elevators & Escalators 14 14 § 1250 Elevators and escalators, including all components thereof (e.g. Elevator guide rails, cab, doors, control button plates. Escalator balustrades, moving handrails, safety strips, comb plates in floor, smoke baffles at ceiling opening) which are permanently affixed to the building and designed to remain in place. They relate to the operation or maintenance of the building and are structural components. NOTE: Smoke Baffles are small partitions that hang straight down from the edge of the ceilings around openings to trap smoke for better smoke detection. Nonresidential Real Property – 39 Year
Energy Management Systems – Building 15 23, 25 § 1250 Energy management systems that monitor or maximize the efficiency of building systems such as HVAC, lighting, fire protection, and security systems, by starting and stopping the systems, raising and lowering temperatures, regulating dampers and valves, adjusting lighting levels, alerting employees to problems, etc.  Includes detection devices such as smoke, motion, and infrared devices, photocells, foil and contact switches, pressure switches, proximity alarms, sensors, alarm transmitting controls, data gathering panels, demand controllers, thermostats, outside air economizers, computer controls, and all related wiring and conduit. Nonresidential Real Property – 39 Year
Energy Management Systems – Process M&E 15 23, 25 § 1245 Energy management systems that monitor or maximize the efficiency of equipment and machinery by starting and stopping process equipment, detecting gas, fluid or chemical leaks or equipment operating temperatures, monitoring power quality, etc. Includes sensors, alarm transmitting controls, data gathering panels, computer controls, and related wiring and conduit for the energy management system. 37.11 Manufacture of Motor Vehicles – 7 Year
Fire Alarm Systems 13 28 § 1250 The fire alarm system is the electric or electronic system that detects and alerts the occupants of the building to fires. The system is designed to protect the building and building occupants and is required for normal building operation and maintenance . Includes all of the components that are required for the proper operation of the fire alarm system such as smoke, heat and flame sensing or detection devices, alarm system computers and associated cabling, hand pulls, visual and audible alarm warning devices, alarm control panels, emergency lighting, and exit signage. Nonresidential Real Property – 39 Year
Fire Protection / Suppression – Special Equipment 10 Specific Division 10 44 00 §1250 / §1245 Fire protection special equipment includes hand-held fire extinguishers and fire extinguisher cabinets. Fire extinguishers and cabinets designed and installed to protect the building are required for normal building operation and maintenance and are building components. Fire extinguishers designed and installed to protect a specific item of equipment or process are personal property. Building Component – 39 Year OR, Personal Property – 7 Year (depending on use)
Fire Protection / Suppression Systems – Building 15 21 § 1250 Fire protection/suppression systems are the mechanical piping systems that provide water for automatic sprinkler systems to limit and extinguish fires occurring in the building and are designed for the protection of the building and its occupants. Building fire protection/suppression piping systems may include wet, dry, deluge, and pre-action fire protection piping systems. Includes all of the components required for a properly operating system (both inside and outside of the building) such as fire protection piping, fittings, valves, hangers and supports, sprinkler heads, fire water pumps, fire water tanks, fire water mains, flow switches, hydrants, post-indicator valves, fire hoses, and fire hose stations.  Nonresidential Real Property – 39 Year
Fire Protection / Suppression Systems – Process M&E 15 21 § 1245 Process fire protection/suppression systems are separate and distinct systems that are designed and installed to protect a specific piece of equipment or process. These systems are not required for normal building operation and maintenance, do not provide general building services and are installed in addition to the normal building fire protection/suppression system. These systems may be either water or non-water based. Water-based systems may contain any of the components ordinarily included in a building fire protection piping system. Non water-based systems may utilize fire suppression agents such as Dry-chemical, Halon, carbon dioxide, Inergen, FE-13, Ansul, FM-200, or Aqueous Film-Forming Foam and include any and all components that are required for the proper operation of the system. The intent and purpose of the process fire protection/suppression system is to protect equipment or processes, not the building. 37.11 Manufacture of Motor Vehicles – 7 Year
Floor Covering – Permanent 9 09 § 1250 Includes floor covering that is affixed with permanent adhesive or nailed or screwed in place like wood flooring. Other examples include ceramic tile, quarry tile, stone, marble, or other coverings that are cemented, mudded, or grouted to the under-floor. Also includes paint, epoxy, sealers or solvent-based floor coatings. Nonresidential Real Property – 39 Year
Floor Covering – Readily Removable 9 09 § 1245 Includes floor covering that is installed by means of strippable adhesives and can be readily removed without damaging the underlying floor. Includes vinyl composition tile (VCT), sheet vinyl, and carpeting. 37.11 Manufacture of Motor Vehicles – 7 Year
Floors – Access Flooring 10 09 § 1245 Raised false floors located in a limited area and installed over an existing floor to accommodate specific equipment. Such floors are a necessary part of the installation and operation of the specific equipment they accommodate.  Removal of these floors does not result in extensive renovations or loss of functionality within the building. 37.11 Manufacture of Motor Vehicles – 7 Year
Floors – Concrete 3 03 §1250 Includes concrete slabs and other floor systems. Includes features such as sloped drainage basins, raised perimeters, and insulated floors. Also includes treatments applied to, or otherwise made a permanent part, of the floor such as "super flat" finish and "metal shake" hardeners.  Does not include special foundations – see Concrete Foundations & Footings. Nonresidential Real Property – 39 Year
Gate House 13 13 § 1250 Typically located at the entrance to the plant site that is designed for truck traffic. All incoming and departing trucks check-in at the gate house. The facility provides workspace for monitoring trucks and cargos, and includes building features and utility connections. Nonresidential Real Property – 39 Year
Guard Shack/Guard Booth 13 13 § 1245 Free standing kiosk type structure typically pre-fabricated and constructed of aluminum and glass. Designed to provide shelter from the elements, but not workspace. Although the shacks can remain in place for extended duration, also can be moved based on needs of outdoor security. 37.11 Manufacture of Motor Vehicles – 7 Year
HVAC (Heating, Ventilating and Air Conditioning) – Building 15 23, 42 § 1250 Heating, ventilating, and air conditioning (HVAC) systems are the mechanical systems that control the temperature, humidity, cleanliness, and circulation of the air within a space as required by the occupants, a process, or a product and include any and all components required for a complete and operable system, including air handling units, fans, chillers, boilers, furnaces, piping, ductwork, hydronic heating or cooling systems, fuel oil tanks and piping, and any other required component. Building HVAC systems serve the operation or maintenance of the building, provide general building ventilation, heating, or cooling and are building structural components. Combination HVAC systems that serve both building and process functions but do not satisfy the “sole justification” test of Treasury Regulation §1.48-1(e)(2) are building components. (See HVAC (Heating, Ventilating and Air Conditioning) – Process Nonresidential Real Property – 39 Year
HVAC (Heating, Ventilating and Air Conditioning) – Process 15 23, 42 § 1245 Process HVAC systems are separate and distinct HVAC systems that satisfy the sole justification test of Treasury Regulation §1.48-1(e)(2) (i.e. the HVAC system is installed solely to meet the temperature or humidity requirements which are essential for the operation of other machinery or the processing of materials). An HVAC system may meet the sole justification test even though it incidentally provides for the comfort of employees, or serves, to an insubstantial degree, areas where such temperature or humidity requirements are not essential. See also CLIMATE CONTROLLED AREAS- SPECIAL EQUIPMENT. 37.11 Manufacture of Motor Vehicles – 7 Year
Land Improvements 2, 3 32 Asset class 00.3 includes both §1245 and §1250 property. Includes improvements directly to or added to land, whether such improvements are section 1245 property or section 1250 property, provided such improvements are depreciable. Examples of such assets might include sidewalks, roads, canals, waterways, drainage facilities, sewers (not including municipal sewers in Class 51), wharves and docks, bridges, fences, landscaping, shrubbery, or radio and television transmitting towers. Includes other tangible property that qualifies under section 1.48-1(d). E51Excludes land improvements that are explicitly included in any other class, and buildings and structural components as defined in section 1.48-1(e) of the regulations. Excludes public utility initial clearing and grading land improvements. Also excludes 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.See also Bollards; Concrete Foundations; Site Lighting; Land Preparation; Parking Lots; Roadways, Curbs, & Sidewalks; Signs; Site Work; Site Utilities; Storage Area; Storage Tanks; Test Track; Tunnels; and Utility Overpasses. 00.3 Land Improvement – 15 Year
Land Preparation – Finish Grading – Land Improvements 2 31 Asset class 00.3 includes both §1245 and §1250 property. Includes land preparation costs so closely associated with depreciable assets that they would be retired, abandoned, or replaced contemporaneously with the depreciable asset. Includes excavation and finish grading associated with roads, sidewalks, parking lots, and other paved areas. See also Land Improvements. 00.3 Land Improvement – 15 Year
Land Preparation – Finish Grading -Building 2 31 §1250 Includes land preparation costs so closely associated with depreciable assets that they would be retired, abandoned, or replaced contemporaneously with the depreciable asset. Includes excavation and finish grading associated with buildings and building foundation elements (e.g., footings, slabs, etc.). Nonresidential Real Property – 39 Year
Land Preparation – General Grading 2 31 LAND Land preparation costs include clearing and grubbing, site stripping, mucking, blasting, fill or excavation, dewatering, and grading to allow development of land. Clearing and grubbing is the removal of debris, brush, trees, etc. from the site. Site stripping is the removal of the topsoil to provide a stable surface for site and building improvements. Mucking is the removal of unstable soils and materials to insure a solid base for intended improvements. General grading involves moving soil for the purpose of producing a more level surface. These costs generally would not have to be re-incurred if the building was repaired, rebuilt, or torn down and replaced with some other type of building. Includes costs to level the area within the building footprint as well as the general site, roadways, parking, and all other site features. General grading does not include fine grading for buildings, roads, sidewalks, parking, and other paved areas. Land – Non depreciable+F55
Light Fixtures – Building 16 26 §1250 Includes lighting such as recessed, lay-in lighting, night lighting, and exit lighting, as well as decorative lighting that provides or contributes to the artificial illumination level to serve building operation and maintenance. Also includes exterior lighting fixtures mounted on the building to illuminate walkways, entrances, etc. For emergency and exit lighting, see Fire Alarm Systems. Nonresidential Real Property – 39 Year
Light Fixtures – Decorative/Special Fixture 16 26+C131 §1245 Includes light fixtures such as neon, track lighting, or grow lights which are decorative in nature and not necessary for the operation or maintenance of the building. If the decorative lighting were turned off, the other sources of lighting would provide sufficient light for operation or maintenance of the building. Also includes exterior light fixtures that highlight only the landscaping or building exterior. If the decorative lighting is the primary source of lighting, then it is section 1250 property. 37.11 Manufacture of Motor Vehicles – 7 Year
Light Fixtures – Process M&E Lighting 16 26 §1245 Light fixtures which are necessary to and used directly with a specific item of machinery or equipment in the manufacturing process. Does not include light fixtures that relate to the operation or maintenance of the building. Examples include light fixtures installed at the equipment to provide additional illumination required to inspect products, read gauges and instrumentation or to perform specific manufacturing tasks. 37.11 Manufacture of Motor Vehicles – 7 Year
Light Fixtures – Site Lighting – Inherently Permanent 16 26 Asset class 00.3 includes both §1245 and §1250 property. Includes pole mounted or freestanding outdoor lighting system permanently set in the ground to illuminate sidewalks, parking, or recreation areas. The supports may or may not be embedded in a concrete foundation. See also Signs – Pylon. 00.3 Land Improvement – 15 Year
Light Fixtures – Site Lighting – Non-inherently Permanent 16 26 §1245 Includes pole mounted or freestanding outdoor lighting system that is not permanently attached to the ground or to a concrete foundation to illuminate sidewalks, parking or recreation areas. See also Poles and Signs – Pylon. 37.11 Manufacture of Motor Vehicles – 7 Year
Lightning Protection & Grounding 13 26 §1250 / §1245 Includes conductive materials to ground properties while attracting lightning strikes and redirecting it away from buildings and other improvements. The lightning protection and grounding assets are components of the properties to which they are affixed. Accordingly, lightning protection and grounding assets affixed to buildings are treated as buildings; lightning protection and grounding assets affixed to land improvements are treated as land improvements. Nonresidential Real Property per IRC 168(c) and as further defined in IRC 168(e)(2)(B) – 39 Year Or Class 00.3 – 15 YEAR
Loading Dock 11 11 § 1250 Includes bumpers, permanently installed dock levelers, plates, seals, lights, canopies, docks, trailer restraining systems, and overhead doors used in the receiving and shipping of goods and supplies. Nonresidential Real Property – 39 Year
Machinery & Equipment 3, 10, 11, 13 11, 13, 14, 41,43, 44, 45, 46 §1245 Includes assets used in the manufacture and assembly of finished automobiles, trucks, trailers, motor homes, and buses. Also includes property which is in the nature of machinery (other than structural components of a building or other inherently permanent structure) even though located outside a building, such as, for example, a gasoline pump, hydraulic car lift, or automatic vending machine. 37.11 Manufacture of Motor Vehicles – 7 Year
Machinery & Equipment – Special Tools     § 1245 Includes assets defined as "special tools" such as jigs, dies, fixtures, molds, patterns, gauges, and specialty transfer and shipping devices, owned by manufacturers of motor vehicles and used in qualified activities as defined in asset class 37.11, Manufacture of Motor Vehicles. Special tools are specifically designed for the production or processing of particular motor vehicle components, products, or parts, and have no significant utilitarian value, and cannot be adapted to further or different use, after changes or improvements are made in the design of the particular part produced by the special tools. Does not include general purpose small tools such as wrenches and drills, both hand and power-driven, and other general purpose equipment such as conveyors, transfer equipment, and materials handling devices. 37.12 Manufacture of Motor Vehicles – 3 Year
Millwork – Decorative 6 06 § 1245 Decorative millwork is the decorative finish carpentry in the building. Examples include detailed crown moldings, lattice work placed over finished walls or ceilings, and merchandise display cabinets. The decorative millwork serves to enhance the overall d袯r and is not related to the operation of the building. Does not include cabinets and counters located in restrooms. See Restroom Accessories 37.11 Manufacture of Motor Vehicles – 7 Year
Millwork – General 6 06 § 1250 General millwork includes building components made of finished wood (e.g., doors and frames, window frames, sashes, porch work, mantels, panel work, stairways, and finish woodwork). Includes pre-built wooden items brought to the site for installation and items constructed on site such as restroom cabinets, door jambs, moldings, trim, etc. Nonresidential Real Property – 39 Year
Office Furniture 12 12 § 1245 Includes furniture and fixtures that are not a structural component of a building. Includes such assets as desks, files, safes, and communications equipment. Does not include communications equipment that is included in other classes. 00.11 Office Furniture, Fixtures, and Equipment – 7 Year
Office Partitions and Cubicles 12 12 §1245 Includes small re-usable partitions that are frequently relocated and re-used. 00.11 Office Furniture, Fixtures, and Equipment – 7 YEAR
Parking Lots 3 32 Asset class 00.3 includes both §1245 and §1250 property. Includes ground level surface parking and base area usually constructed of asphalt, brick, concrete, stone or similar material. Also includes bumper blocks, curb cuts, curb work, striping, concrete landscape islands, truck parking ramps and staging areas, and traffic control systems (such as traffic lights and detectors, card readers, parking equipment, etc.). See also Roadways, Curbs, and Sidewalks. 00.3 Land Improvement – 15 Year
Parking Structures 3 03 §1250 Any structure or edifice the purpose of which is to provide parking space. Includes, for example, open-air garages, parking ramps, or other parking structures. Nonresidential Real Property – 39 Year
Pits, trenches, special floor levels – conveyance equipment 3, 14 03, 41 § 1250 Includes pits, trenches, floors, walls and other building components that accommodate conveyance systems or process machinery. For example, manufacturing plants may include conveyors that run almost the full length of the building that are installed on a recessed floor (or trench) so that the products being manufactured move along the conveyor from station to station at the normal floor level allowing workers to step on and off the conveyor without having to climb steps. The recessed flooring and trench walls designed to accommodate the conveyors constitute structural building components. Does not include building structural components specially designed to meet the specific structural support requirements of machinery and equipment. Usually constructed of concrete. See also Concrete Foundations & Footings. Nonresidential Real Property – 39 Year
Pits, trenches, special floor levels – Machinery & Equipment 3 03 §1245 Includes pits, trenches, floors, and walls specially designed to meet the specific structural support requirements of machinery and equipment (i.e. physical weight, stability, structural stresses, vibration dampening). Increased thickness and/or changes in floor elevation alone are not sufficient to show that the foundation, pad, or footing is so specially designed that it is in essence a part of the machinery or equipment it supports. Usually constructed of concrete. See also Concrete Foundations & Footings 37.11 Manufacture of Motor Vehicles – 7 Year
Plumbing Systems – Building 15 22 § 1250 Plumbing systems include the mechanical systems that supply water to the facility through hot and cold water distribution piping systems, remove liquid-borne wastes from the facility through storm and sanitary sewer piping systems, and supply natural gas to building equipment through natural gas distribution piping systems. Building plumbing systems consist of all of the components of the plumbing system serving the operation or maintenance of the building or necessary to provide general building services. Includes such components as plumbing fixtures (e.g., toilets, urinals, lavatories, sinks, etc.); electric water coolers; hot water heaters; and associated piping components such as fittings, valves, traps, drains, roof drains, hangers, supports, insulation, etc. Nonresidential Real Property – 39 Year
Plumbing Systems – Process 15 22, 40, 43 § 1245 Process plumbing systems are separate plumbing systems which are necessary to and used directly with a specific item of machinery or equipment or a process. Process plumbing systems do not include plumbing hook-ups, natural gas distribution systems, or sewer systems that are of general building applicability and accessibility. Process plumbing systems may include such components as filters; tanks; pumps; and specialized piping along with associated piping components such as fittings, valves, traps, drains, hangers, supports, and insulation. Process plumbing systems may include dedicated water systems separate from the building’s plumbing systems which are used to produce specialty water required in a manufacturing process, such as deionized water (DI) and water for injection (WFI). Process plumbing may include dedicated natural gas distribution piping serving process machinery and equipment from the point at which connections are branched from the building’s natural gas distribution system(s) to the equipment. 37.11 Manufacture of Motor Vehicles – 7 Year
Process Conveyance Systems 14 14 §1245 Includes property used in the transporting or moving of raw materials, work in progress, and finished products. Examples include equipment specifically related to the process, lifts, part retrieval systems, etc. Usually associated with a manufacturing or assembly line. Examples of finished products are automobiles, trucks, trailers, motor homes, and busses. Does not include structural components of a building or other inherently permanent structure. See Machinery and Equipment. Does not include pits, trenches, & floors. 37.11 Manufacture of Motor Vehicles – 7 Year
Process Piping Systems 15 40, 43 § 1245 Process piping systems are the mechanical piping systems whose function is to convey and distribute the fluids used for the manufacturing processes. Process piping systems are separate and distinct from the plumbing or piping systems used to provide general building services and may include piping systems for compressed air, vacuum, painting, lubricants, or other materials used in the manufacturing process. Process piping systems may include such components as filters; tanks; pumps; vacuum pumps; compressors; and specialized piping along with associated piping components such as fittings, valves, traps, drains, hangers, supports, and insulation. 37.11 Manufacture of Motor Vehicles – 7 Year
Qualified Technological Equipment 16 27 §1245 Includes any computer or peripheral equipment, any high technology telephone station equipment, and any high technology medical equipment. Does not include any equipment which is an integral part of other property which is not a computer.  Does not include typewriters, calculators, adding and accounting machines, copiers, duplicating equipment, and similar equipment. Also does not include equipment of a kind used primarily for amusement or entertainment of the user. See also Computers. Section 168(e)(3)(B)(iv) – 5 Year
Railroad Grading and Tunnel Bore 11 31 §1250 / §1245 Includes all improvements resulting from excavations (including tunneling), construction of embankments, clearings, diversions of roads and streams, sodding of slopes, and similar work necessary to provide, construct, reconstruct, alter, protect, improve, replace, or restore a roadbed or right-of-way for railroad track. Section 168(c) – 50 Year SL
Railroad Tracks 2 34 §1250 / §1245 Siding or spur (rails, ties, switches) leading to the manufacturing site from the main rail lines. Section 168(e)(3)(C)(i) – 7 Year
Restroom Accessories 10 10 § 1250 Includes paper towel dispensers, electric hand dryers, towel racks or holders, cup dispensers, purse shelves, toilet paper holders, soap dispensers or holders, lotion dispensers, sanitary napkin dispensers and waste receptacles, coat hooks, handrails, grab bars, mirrors, shelves, vanity cabinets, counters, ashtrays, baby changing stations, and other items generally found in public restrooms that are built into or mounted on walls or partitions. Nonresidential Real Property – 39 Year
Restroom Partitions 10 10 § 1250 Includes shop-made and standard manufacture toilet partitions, typically metal, but may be plastic or other materials. Nonresidential Real Property – 39 Year
Roadways, Curbs, and Sidewalks 3 31 Asset class 00.3 includes both §1245 and §1250 property. Includes grade level driveways, roads, and base areas usually constructed of asphalt, brick, concrete, stone or similar material. Also includes guard rails, curbs, curb cuts, curb work, and sidewalks. Does not include test track roadways. 00.3 Land Improvement – 15 Year
Roof 3, 4, 5, 6, 7, 8 03, 04, 05, 06, 07, 08 §1250 Includes elements of the roof including joists, rafters, deck, shingles, vapor barrier, skylights, trusses, girders, flashings, gutters, and drains. Decorative elements of a roof (e.g., false dormers, mansard) may constitute structural building components depending on their integration with the overall roof, not their load bearing capacity. If the decorative element houses structural components such as wiring or lighting fixtures, or if removal of the decorative element results in the direct exposure of building components to elements or moisture damage, then the decorative elements are part of the overall roof system and are structural components of the building. Usually constructed of concrete, metals, masonry, etc. Nonresidential Real Property – 39 Year
Security Systems – Buildings 13 28 §1250 Includes security equipment for the protection of the building and its contents from burglary or vandalism as well as protection of employees from assault. Examples include window and door locks; card key access systems; keyless entry systems; security cameras, recorders, monitors and related equipment; perimeter and interior building motion detectors; security lighting; alarm systems; and security system wiring and conduit. Nonresidential Real Property – 39 Year
Security Systems – Product/Inventory 13 28 § 1245 Electronic systems used to track and monitor tangible items,(i.e., raw materials, work in process, and finished products inventories). Includes electronic tags, electronic gates, scanners, recorders, and related equipment. 37.11 Manufacture of Motor Vehicles – 7 Year
Signs 10 10 § 1245 Includes signs used to display directories of names or indicate the location of business functions and departments. Also includes neon and other decorative signs. 37.11 Manufacture of Motor Vehicles – 7 Year
Signs – Building 10 10 § 1250 Includes safety signs, restroom identifiers, room numbers, and other signs relating to the operation or maintenance of a building. Includes signs posted along evacuation routes in buildings that indicate the direction of travel to the nearest exit. These signs typically read "EXIT" and may have distinctive colors, illumination, or arrows indicating the direction of the exit. See also Fire Protection Systems Nonresidential Real Property – 39 Year
Signs – Freestanding 10 10 Asset class 00.3 includes both §1245 and §1250 property. Includes freestanding exterior signs used to direct traffic and parking that are set in the ground. See also Signs – Pylon or Billboard 00.3 Land Improvement – 15 Year
Signs – Pylon or Billboard – Electronic Face 10 10 § 1245 Includes only the electronic sign face and/or message screen and related components. Includes brand displays and company brand image enhancements. Does not include sign support structure. 37.11 Manufacture of Motor Vehicles – 7 Year
Signs – Pylon or Billboard – Inherently Permanent 3, 5, 10 03, 05, 10 Asset class 00.3 includes both §1245 and §1250 property. Includes signs and supports made of concrete, brick, wood frame, stucco, or similar materials usually permanently set in the ground. The supports may or may not be embedded in a concrete foundation. 00.3 Land Improvement – 15 Year
Signs – Pylon or Billboard – Non-inherently Permanent 3, 5, 10 03, 05, 10 §1245 Includes signs and supports made of concrete, brick, wood frame, stucco, or similar materials that are not permanently attached to the ground or to a concrete foundation. 37.11 Manufacture of Motor Vehicles – 7 Year
Site Utilities – Electrical – Building 2 33 §1250 See the category "Electrical Distribution – Service Entrance – Building" Nonresidential Real Property – 39 Year
Site Utilities – Electrical – Process 2 33 §1245 See the category "Electrical Distribution – Service Entrance – Process M&E" 37.11 Manufacture of Motor Vehicles – 7 Year
Site Utilities – Natural Gas System – Building 2 33 §1250 Site Natural Gas Systems convey natural gas from the point of connection with the gas utility supplier gas main to the building and include any and all piping, valves and other components required for a complete and operable system. Building Site Natural Gas Systems provide gas for comfort heating, domestic water heating or other uses that serve the operation or maintenance of the building or necessary to provide general building services Nonresidential Real Property – 39 Year
Site Utilities – Natural Gas System – Process 2 33 §1245 Process Site Natural Gas Systems are separate and distinct systems that are necessary to and used directly with a specific item of machinery or equipment or a process. Does not include components that are of general building applicability and accessibility. 37.11 Manufacture of Motor Vehicles – 7 Year
Site Utilities – Sanitary Sewer System – Building 2 33 §1250 Site Sanitary Sewer Systems convey domestic wastewater and/or industrial wastewater from the building to the pretreatment or treatment plant or to the point of connection with the municipal sanitary sewer system and include any and all piping, manholes, lift stations (including pumps and pump controls), and other structures or components required for a complete and operable system. Building Site Sanitary Sewer Systems convey domestic wastewater that serve the operation or maintenance of the building or necessary to provide general building services. Nonresidential Real Property – 39 Year
Site Utilities – Sanitary Sewer System – Process 2   §1245 Process Site Sanitary Sewer Systems are separate and distinct systems that are necessary to and used directly with a specific item of machinery or equipment or a process. Does not include components that are of general building applicability and accessibility. 37.11 Manufacture of Motor Vehicles – 7 Year
Site Utilities – Storm Sewer System 2 33 Asset class 00.3 includes both §1245 and §1250 property. Site Storm Sewer Systems convey storm water from the property site to the point of disposal (such as a detention or retention pond) or to the point of connection with the municipal storm sewer system and include all piping, gutter or curb inlets, catch basins, manholes, flared end sections, and any other structures or components required for a complete and operable system. Excludes gutters, downspouts, and drainage piping within the footprint of the building. 00.3 Land Improvement – 15 Year
Site Utilities – Water System – Building 2 33 §1250 Site Water Systems convey water from the point of connection with the water utility provider water main to the building and include any and all piping, valves, post-indicator valves, fire hydrants, and other components required for a complete and operable system. Also may include on site water wells (including well pumps and associated components). Building Site Water Systems provide water for domestic uses such as restrooms and building fire protection systems that serve the operation or maintenance of the building or necessary to provide general building services. Nonresidential Real Property – 39 Year
Site Utilities – Water System – Irrigation 2 33 Asset class 00.3 includes both §1245 and §1250 property. Irrigation Site Water Systems provide water for irrigation/sprinklers for lawn and landscaping areas as well as for pressure washing paved and concrete surfaces. Also may include on site water wells (including well pumps and associated components) and Artesian wells. See also Land Improvements. 00.3 Land Improvement – 1 Year
Site Utilities – Water System – Process 2 33 §1245 Process Site Water Systems are separate and distinct systems that are necessary to and used directly with a specific item of machinery or equipment or a process. Does not include components that are of general building applicability and accessibility. 37.11 Manufacture of Motor Vehicles – 7 Year
Site Work & Site Improvements 2 32 Asset class 00.3 includes both §1245 and §1250 property. See Land Preparation; Land Improvements. 00.3 Land Improvement – 15 Year
Stairs and Handrails – Building 3, 5 03, 05 §1250 A structure consisting of a flight of steps leading from one floor or level to another and related to the operation or maintenance of a building. Includes railings and hand railings. See also Catwalks and Mezzanines – Building. Nonresidential Real Property – 39 Year
Stairs and Handrails – Equipment Access 3, 5 03, 05 §1245 A structure consisting of a flight of steps designed and constructed only to provide access to inspect, repair, or operate specific items of machinery or equipment. Includes railings and hand railings. See also Catwalks and Mezzanines – Equipment Access. 37.11 Manufacture of Motor Vehicles – 7 Year
Steam Generation – Steam Boiler / Piping Systems rated above 12,500 lbs/hr capacity 15, 16 28, 48 §1250 / §1245 Depreciable assets, whether such assets are §1245 property or §1250 property, used in the production and/or distribution of steam with rated total capacity in excess of 12,500 pounds per hour for use by the taxpayer in its industrial manufacturing process or plant activity and not ordinarily available for sale to others.  Does not include buildings and structural components as defined in section 1.48-1(e) of the regulations. Does not include steam and chemical recovery boiler systems utilized for the recovery and regeneration of chemicals used in the manufacturing process. 00.4 Distribution Systems – 15 Year
Steam Generation – Steam Boiler / Piping Systems rated not more than 12,500 lbs/hr capacity – Building 15 15 § 1250 Steam Boiler / Piping systems are systems used for generating and distributing steam for building and/or other uses and include any and all components required for a complete and operable system including boilers, heat exchangers, steam traps, feed water pumps, condensate pumps, and associated piping components such as valves, fittings, hangers, supports and insulation. Building Steam Boiler / Piping Systems provide steam for building operation and maintenance purposes or for general building services, such as comfort heating. Nonresidential Real Property – 39 Year
Steam Generation – Steam Boiler / Piping Systems rated not more than 12,500 lbs/hr capacity – Process 15 23, 42 § 1245 Process Steam Boiler / Piping Systems are separate and distinct systems for generating and distributing steam to equipment or process uses. To be considered a dedicated Process Steam Boiler / Piping System the boiler must be directly connected to the process equipment and must not provide for more than incidental building use through its steam supply and condensate return piping loops. Does not include components that are of general building applicability. 37.11 Manufacture of Motor Vehicles – 7 Year
Storage Area – Exterior – Goods 2 32 Asset class 00.3 includes both §1245 and §1250 property. Includes an exterior paved, fenced, and gated area (sometimes covered for weather protection), and associated improvements used for storing materials and finished goods and products. Does not include areas within a building; storage buildings; or warehouses. 00.3 Land Improvement – 15 Year
Storage Area – Exterior – Waste 2 32 Asset class 00.3 includes both §1245 and §1250 property. Areas for general waste storage. Includes exterior paved, fenced and gated areas (sometimes covered for weather protection), and associated improvements used for storing waste materials including dumpsters, drums of liquid waste, and other waste materials.  May include paved areas typically with berms to contain any spills from waste being stored. Does not include areas within a building; storage buildings; or warehouses. 00.3 Land Improvement – 15 Year
Storage Tanks – Not Inherently Permanent 3, 13 23, 33 § 1245 Includes indoor or outdoor tanks, or storage vessels that are not inherently permanent and that can hold, store, or dispense solid or liquid materials. Includes dispensing pumps, piping, valves, leak detection systems, and containment dikes. 37.11 Manufacture of Motor Vehicles – 7 Year
Storage Tanks – Inherently Permanent 3, 13 23, 33 Asset class 00.3 includes both §1245 and §1250 property. Includes above ground or underground storage tanks that are inherently permanent. Includes dispensing pumps, piping, valves, leak detection systems, and containment dikes. 00.3 Land Improvement – 15 Year
Test Track – Product Quality Testing 2 32 Asset class 00.3 includes both §1245 and §1250 property. Test track located at manufacturing plant site used to test newly completed vehicles. Testing may include acceleration, vibration, braking, cornering, handling, etc. Includes paving, bridges, ramps, guard rails, privacy fencing, gates, and any other related items. 00.3 Land Improvement – 15 Year
Test Track – Research 2 32 §1245 Test track located at manufacturing plant site, technical research center, or remotely; and that is used solely for the performance of research and experimentation. Testing may include research associated with the development of new and unique engine, transmission, suspension, steering, or braking systems, etc. Includes paving, bridges, ramps, guard rails, privacy fencing, gates, and any other related items. Section 168(e)(3)(B)(v) – 5 Year
Tunnels – Work/Access 2 32 Asset class 00.3 includes both §1245 and §1250 property. Customary below grade construction under the factory floor in the nature of tunnels that permit the movement of workers from one point to another point along the process line. Tunnels may also lead from one building or structure to another building or structure. Features may include walkways, lighting, HVAC, stairs, handrails, exit signs, electrical outlets, and work space. Tunnels are more than press pits, but less than building basements. 00.3 Land Improvement – 15 Year
Utility Overpass Structures 2, 5 02, 05 Asset class 00.3 includes both §1245 and §1250 property. Includes self supporting pipe bridge structures (similar to a trestle) that provide elevated support for utility lines or similar items between two locations. 00.3 Land Improvement – 15 Year
Wall Coverings – Nonpermanent 9 09 §1245 Includes strippable wallpaper affixed by means of an adhesive that causes no damage to the underlying wall or wall surface upon removal. 37.11 Manufacture of Motor Vehicles – 7 Year
Wall Coverings – Permanent 9 09 §1250 Includes interior and exterior paint; ceramic or quarry tile, marble, stone, brick, and other finishes affixed with mortar, cement, or grout; paneling, wainscoting, and other wood finishes affixed with nails, screws, or permanent adhesives; sanitary finishes such as Fiberglass Reinforced Plastic (FRP), stainless steel, or plastic; sound absorbing or fabric wall panels; and wall protection (such as bumpers, corner guards, etc.). Nonresidential Real Property – 39 Year
Walls – Exterior 3, 4, 5, 6 03, 04, 05, 06 §1250 Includes all exterior walls and building support regardless of construction materials. Exterior walls may include columns, posts, beams, girders, tilt up panels, studs, framing, sheetrock, insulation, windows, doors, exterior fa栤e, brick, masonry, etc. Nonresidential Real Property – 39 Year
Walls – Interior 6, 9 06, 09 §1250 Includes all load bearing interior partitions regardless of construction. Also includes non-load bearing partitions regardless of height (typically constructed of studs and sheetrock or other materials) that cannot be readily removed and incur damage upon removal. Includes rough carpentry and finishes such as plaster, dry wall, gypsum board, concrete block, glass, or metal. Nonresidential Real Property – 39 Year
Walls – Movable Partition 6,9 06, 09 §1245 Includes interior walls where the partition can be readily removed and remain in substantially the same condition after removal. Also, can be moved and reused, stored, or sold in their entirety. 37.11 Manufacture of Motor Vehicles – 7 Year
Window Treatments 12 12 § 1245 Window treatments include drapes, curtains, louver, blinds, post construction tinting and interior decorative theme d袯r which are readily removable. 37.11 Manufacture of Motor Vehicles – 7 Year
Windows 8 08 § 1250 Exterior windows, including office and facility windows, and exterior glass partitions expansion joints and moisture barriers. Nonresidential Real Property – 39 Year