Section 179 of the federal tax code allows businesses such as partnerships, sole proprietorships and corporations to accelerate the depreciation of certain business equipment. Vans, trucks and sport utility vehicles that weigh more than 6,000 pounds when carrying their maximum recommended passengers and cargo can be substantially depreciated in the first year of service instead of over the typical five years.Note that this revision of the tax code was part of the most recent round of Bush tax cuts. You can read about (among other things) the administration's careful vetting process for those cuts here.
The list of vehicles that meet the 6,000-pound threshold includes the Cadillac Escalade, Lincoln Navigator, Ford Expedition and Excursion, Hummer H1 and H2 and others. The buyers aren't just small-business people and farmers. Many are doctors, lawyers and real estate agents.
January 11, 2004