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Publication of Depreciation Rates

The United States Department of Agriculture (USDA) Rural Utilities Service (RUS) administers rural utilities programs, including the Telecommunications Program. RUS announces th...

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Department of Agriculture

Rural Utilities Service

[RUS-21-TELECOM-0015]

AGENCY:

Rural Utilities Service, Department of Agriculture.

ACTION:

Notice of depreciation rates for telecommunications plant.

SUMMARY:

The United States Department of Agriculture (USDA) Rural Utilities Service (RUS) administers rural utilities programs, including the Telecommunications Program. RUS announces the depreciation rates for telecommunications plant for the period ending December 31, 2020.

DATES:

These rates are effective immediately and will remain in effect until rates are available for the period ending December 31, 2021.

FOR FURTHER INFORMATION CONTACT:

Laurel Leverrier, Assistant Administrator, Telecommunications Program, Rural Utilities Service, Mail Stop 1590—Room 4121, 1400 Independence Avenue SW, Washington, DC 20250-1590. Telephone: (202) 720-9556, laurel.leverrier@usda.gov.

SUPPLEMENTARY INFORMATION:

In 7 CFR part 1737, Pre-Loan Policies and Procedures Common to Insured and Guaranteed Telecommunications Loans, § 1737.70(e) explains the depreciation rates that are used by RUS in its feasibility studies. Given that approved depreciation rates per § 1737.70(e)(1) do not exist, RUS is publishing its annual median depreciation rates for all borrowers, in accordance with § 1737.70(e)(2). RUS also notes that the rates have changed only minimally from the previous year. The following chart provides those rates, compiled by RUS, for the reporting period ending December 31, 2020: ( printed page 49505)

Median Depreciation Rates of Rural Utilities Service Borrowers by Equipment Category for Period Ending December 31, 2020
Telecommunications plant category	Depreciation rate
1. Land and Support Assets:
a. Motor vehicles	18.00
b. Aircraft	11.13
c. Special purpose vehicles	12.00
d. Garage and other work equipment	10.00
e. Buildings	3.25
f. Furniture and office equipment	10.00
g. General purpose computers	20.00
2. Central Office Switching:
a. Digital	10.00
b. Analog & Electro-mechanical	10.00
c. Operator Systems	10.00
3. Central Office Transmission:
a. Radio Systems	10.00
b. Circuit equipment	10.00
4. Information origination/termination:
a. Station apparatus	12.25
b. Customer premises wiring	10.00
c. Large private branch exchanges	11.90
d. Public telephone terminal equipment	12.00
e. Other terminal equipment	10.15
5. Cable and wire facilities:
a. Aerial cable—poles	6.00
b. Aerial cable—metal	6.00
c. Aerial cable—fiber	5.10
d. Underground cable—metal	5.00
e. Underground cable—fiber	5.00
f. Buried cable—metal	5.15
g. Buried cable—fiber	5.00
h. Conduit systems	4.00
i. Other	5.00

Christopher McLean,

Acting Administrator, Rural Utilities Service.

[FR Doc. 2021-19018 Filed 9-2-21; 8:45 am]

BILLING CODE 3410-15-P

Legal Citation

Federal Register Citation

Use this for formal legal and research references to the published document.

86 FR 49504

Web Citation

Suggested Web Citation

Use this when citing the archival web version of the document.

“Publication of Depreciation Rates,” thefederalregister.org (September 3, 2021), https://thefederalregister.org/documents/2021-19018/publication-of-depreciation-rates.