From time to time, questions arise as to the appropriateness of current tax treatment of equipment and structures. This report examines the current depreciation rules for structures and how they relate to effective tax rates on structures relative to equipment. Tax depreciation rules set in 1986 to equalize these tax burdens have been altered, both directly and through the effects of inflation on present value. Tax burdens on structures are higher than those on equipment, and either a lengthening of equipment lives or a shortening of structure lives would be required to equalize these tax rates. These conclusions are subject to uncertainties regarding economic depreciation rates, however. More intensive use of debt finance does not appear to be a justification for less generous depreciation rates for structures, and, in fact, the evidence does not support higher leveraging rates.