Non-Compete Clauses are (generally) ordinary income, as the value assigned to these are typically value received for lost services "compensatory".
The reason non-compete clauses are not listed in the Installment Sale instructions is because non-compete clauses are not assets available for sale, and also the tax treatment for this type of income is discussed elsewhere in the tax code. It's the same with A/R sold on installment (also treated as ordinary income, and not mentioned in the Installment publication because the taxability of these "hot assets" like A/R are discussed elsewhere in the tax code).
