The Tax Reform Act of 1986 created a new accelerated depreciation system, which grouped property in the following classes:
• 3-year class—asset depreciation range (ADR) midpoints of 4 years and less, except that automobiles and light trucks are excluded and present law for horses that are in the 3-year class is retained. The method is 200 percent declining balance, switching to straight line.
• 5-year class—ADR midpoints of more than 4 years and less than 10 years, adding automobiles, light trucks, qualified technological equipment, computer-based central office switching equipment, renewable energy and biomass properties that are small power production facilities, and research and experimentation property. ...