SECTION 1. PURPOSE

This revenue procedure provides limitations on depreciation deductions for owners of passenger automobiles designed to be propelled primarily by electricity and built by an original equipment manufacturer (electric automobiles) first placed in service after August 5, 1997, and before January 1, 1998, and the amounts to be included in income by lessees of electric automobiles first leased after August 5, 1997, and before January 1, 1998. The tables detailing these depreciation limitations and lessee inclusion amounts reflect the tripling of the base depreciation limits provided in § 280F(a)(1)(A) required by § 280F(a)(1)(C) of the Internal Revenue Code, and the automobile price inflation adjustments required by § 280F(d)(7).