SECTION 2. BACKGROUND

1. For owners of passenger automobiles, § 280F(a) imposes dollar limitations on the depreciation deduction for the year that the passenger automobile is placed in service by the taxpayer and each succeeding year. In the case of electric automobiles placed in service after August 5, 1997, and before January 1, 2007, § 280F(a)(1)(C) requires tripling of these limitation amounts. Section 280F(d)(7) requires the amounts allowable as depreciation deductions to be increased by a price inflation adjustment amount for passenger automobiles placed in service after 1988. The method of calculating this price inflation amount for trucks and vans

2004-13 I.R.B. 642 March 29, 2004

the passenger automobile is leased. See Rev. Proc. 2002–14, 2002–1 C.B. 450, for passenger automobiles first leased before January 1, 2003, and Rev. Proc. 2003–75, 2003–2 C.B. 1018, for passenger automobiles first leased during calendar year 2003. 03. The maximum fair market value figure in section 4.04(2) of this revenue procedure applies to employer-provided passenger automobiles first made available to any employee for personal use in calendar year 2004. See Rev. Proc. 2002–14 for the maximum fair market value figure for passenger automobiles first made available before January 1, 2003, and Rev. Proc. 2003–75 for passenger automobiles first made available during calendar year 2003.