SECTION 3. SCOPE AND

OBJECTIVE

1. The limitations on depreciation deductions in section 4.02 of this revenue procedure apply to automobiles (other than leased automobiles) that are placed in service in calendar year 1997 and continue to apply for each tax year that the automobile remains in service.

2. The table in section 4.03 of this revenue procedure applies to leased automobiles for which the lease term begins in calendar year 1997. Lessees of such automobiles must use this table to determine the inclusion amount for each tax year during which the automobile is leased. See Rev. Proc. 96–25, 1996–8 I.R.B. 19, which provides information on determining inclusion amounts for automobiles first leased before January 1, 1997.

3. The maximum fair market value figure in section 4.04(2) of this revenue procedure applies to employer-provided automobiles first made available to any employee for personal use in calendar year 1997.