# Recovery Period

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Last modified: 2026-05-29T19:39:17+00:00
Type: efin_glossary

## Summary

Number of years equipment is depreciated under MACRS. Common: 5, 7, or 10 years.

## Content

Recovery period is the number of years MACRS uses to depreciate a piece of equipment. The IRS assigns each equipment class a recovery period based on its expected useful life and historical depreciation patterns.
Standard recovery periods
ClassExamples
3-yearCertain manufacturing tooling, racehorses
5-yearComputers, office equipment, trucks, trailers, cars, light-duty vehicles, certain agricultural equipment, R&D equipment
7-yearOffice furniture, fixtures, agricultural machinery (other), most equipment without specific class assignment
10-yearSingle-purpose agricultural structures, certain water transportation equipment
15-yearQualified improvement property, land improvements, certain restaurant property
20-yearFarm buildings (non-residential), municipal sewers

Why recovery period matters

Tax timing: shorter recovery = faster deductions = earlier tax benefit
Cash flow: equipment with shorter recovery (5-7 years) generates larger early-year tax savings
Bonus depreciation eligibility: property with recovery period of 20 years or less qualifies for bonus depreciation

Section 179 vs recovery period
Section 179 lets you deduct the full cost in year one regardless of MACRS recovery period (up to the cap). Bonus depreciation also bypasses the schedule. Only the remainder (after §179 + bonus) follows the MACRS recovery period.
State conformity
Some states use different recovery periods than federal MACRS. Most conform; check your state's Department of Revenue current-year guidance.