SECTION 2. BACKGROUND

.01 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. 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 placed in service in or after calendar year 2003 uses a different CPI “automobile component”

(the “new trucks” component) than that used in the price inflation amount calculation for other passenger automobiles (the “new cars” component), resulting in somewhat higher depreciation deductions for trucks and vans. This change reflects the higher rate of price inflation that trucks and vans have been subject to since 1988.

.02 Section 103 of the Economic Stimulus Act of 2008, Pub. L. No. 110–185, 122 Stat. 613 (Feb. 13, 2008), amended § 168(k). As amended, § 168(k)(1)(A) provides a 50-percent additional first year depreciation deduction for certain new property acquired by the taxpayer after December 31, 2007, and before January 1, 2009, so long as no written binding contract for the acquisition of the property existed prior to January 1, 2008. The Act also amended § 168(k)(2)(F)(i) to increase the first year depreciation allowed under § 280F(a)(1)(A) by $8,000 for passenger automobiles to which the 50-percent additional first year depreciation deduction applies.

.03 Section 168(k)(2)(D)(i) provides that the 50-percent additional first year depreciation deduction does not apply to any property required to be depreciated under the alternative depreciation system of section 168(g), including property described in section 280F(b)(1). Further, section 168(k)(2)(D)(iii) permits a taxpayer to elect not to claim the 50-percent additional first year depreciation deduction for any class of property. Accordingly, this revenue procedure provides tables for passenger automobiles for which the 50-percent additional depreciation deduction applies and tables for passenger automobiles for which the 50-percent additional first year depreciation deduction does not apply, including passenger automobiles in a class of property for which the taxpayer “elects out” of the 50-percent additional first year depreciation deduction.

.04 For leased passenger automobiles, § 280F(c) requires a reduction in the deduction allowed to the lessee of the passenger automobile. The reduction must be substantially equivalent to the limitations on the depreciation deductions imposed on owners of passenger automobiles. Under § 1.280F–7(a) of the Income Tax Regulations, this reduction requires the lessees to include in gross income an inclusion amount determined by applying a formula to the amount obtained from a table. There

2008–12 I.R.B. 658 March 24, 2008

all trucks and vans that are first placed in service in calendar year 2008. The dollar limitations in § 280F(a) must therefore be multiplied by a factor of 0.2412, and the resulting increases, after rounding to the nearest $100, are added to the 1988 limitations to give the depreciation limitations applicable to trucks and vans.

(2) Amount of the Limitation . For passenger automobiles placed in service by the taxpayer in calendar year 2008, Tables 1 through 4 contain the dollar amount of the depreciation limitation for each taxable year. Use Table 1 for a passenger automobile (other than a truck or van) placed in service by the taxpayer in calendar year 2008, for which the 50-percent additional first year depreciation deduction does not apply, including a passenger automobile (other than a truck or van) in a class of property for which the taxpayer elects out of the 50-percent additional first year depreciation deduction. Use Table 2 for a passenger automobile (other than a truck or van) placed in service by the taxpayer in calendar year 2008, for which the 50-percent additional first year depreciation deduction applies. Use Table 3 for a truck or van placed in service by the taxpayer in calendar year 2008, for which the 50-percent additional first year depreciation deduction does not apply, including a truck or van in a class of property for which the taxpayer elects out of the 50-percent additional first year depreciation deduction. Use Table 4 for a truck or van placed in service by the taxpayer in calendar year 2008, for which the 50-percent additional first year depreciation deduction applies.

senger automobile (other than a truck or van) in a class of property for which the taxpayer elects out of the 50-percent additional first year depreciation deduction. Table 2 of this revenue procedure provides limitations on depreciation deductions for a passenger automobile (other than a truck or van) for which the 50-percent additional first year depreciation deduction applies. Table 3 of this revenue procedure provides limitations on depreciation deductions for a truck or van for which the 50-percent additional first year depreciation deduction does not apply, including a truck or van in a class of property for which the taxpayer elects out of the 50-percent additional first year depreciation deduction. Table 4 of this revenue procedure provides limitations on depreciation deductions for a truck or van for which the 50-percent additional first year depreciation deduction applies.

(2) Inclusions in Income of Lessees of Passenger Automobiles . A taxpayer first leasing a passenger automobile during calendar year 2008 must determine the inclusion amount that is added to gross income using the tables in section 4.03 of this revenue procedure. The inclusion amount is determined using Table 5 in the case of a passenger automobile (other than a truck or van), and Table 6 in the case of a truck or van. In addition, the procedures of § 1.280F–7(a) must be followed.

.02 Limitations on Depreciation Deduc- tions for Certain Automobiles .

(1) Amount of the Inflation Adjustment . Under § 280F(d)(7)(B)(i), the automobile price inflation adjustment for any calendar year is the percentage (if any) by which the CPI automobile component for October of

the preceding calendar year exceeds the CPI automobile component for October 1987. The term “CPI automobile component” is defined in § 280F(d)(7)(B)(ii) as the “automobile component” of the Consumer Price Index for all Urban Consumers published by the Department of Labor (the CPI). The new car component of the CPI was 115.2 for October 1987 and 135.169 for October 2007. The October 2007 index exceeded the October 1987 index by 19.969. The Internal Revenue Service has, therefore, determined that the automobile price inflation adjustment for 2008 for passenger automobiles (other than trucks and vans) is 17.33 percent (19.969/115.2 x 100%). This adjustment is applicable to all passenger automobiles (other than trucks and vans) that are first placed in service in calendar year 2008. The dollar limitations in § 280F(a) must therefore be multiplied by a factor of 0.1733, and the resulting increases, after rounding to the nearest $100, are added to the 1988 limitations to give the depreciation limitations applicable to passenger automobiles (other than trucks and vans) for calendar year 2008. To determine the dollar limitations applicable to trucks and vans first placed in service during calendar year 2008, the new truck component of the CPI is used instead of the new car component. The new truck component of the CPI was 112.4 for October 1987 and 139.513 for October 2007. The October 2007 index exceeded the October 1987 index by 27.113. The Service has, therefore, determined that the automobile price inflation adjustment for 2008 for trucks and vans is 24.12 percent (27.113/112.4 x 100%). This adjustment is applicable to

REV. PROC. 2008–22 TABLE 1

DEPRECIATION LIMITATIONS FOR PASSENGER AUTOMOBILES (THAT ARE NOT TRUCKS OR VANS) PLACED IN SERVICE BY THE TAXPAYER IN CALENDAR YEAR 2008, FOR WHICH THE 50-PERCENT ADDITIONAL FIRST YEAR

DEPRECIATION DEDUCTION DOES NOT APPLY

Tax Year Amount

1st Tax Year $2,960 2nd Tax Year $4,800 3rd Tax Year $2,850 Each Succeeding Year $1,775

March 24, 2008 659 2008–12 I.R.B.

REV. PROC. 2008–22 TABLE 2

DEPRECIATION LIMITATIONS FOR PASSENGER AUTOMOBILES (THAT ARE NOT TRUCKS OR VANS) PLACED IN SERVICE BY THE TAXPAYER IN CALENDAR YEAR 2008, FOR WHICH THE 50-PERCENT ADDITIONAL FIRST YEAR

DEPRECIATION DEDUCTION APPLIES

Tax Year Amount

1st Tax Year $10,960 2nd Tax Year $4,800 3rd Tax Year $2,850 Each Succeeding Year $1,775

REV. PROC. 2008–22 TABLE 3

DEPRECIATION LIMITATIONS FOR TRUCKS AND VANS PLACED IN SERVICE BY

THE TAXPAYER IN CALENDAR YEAR 2008, FOR WHICH THE 50-PERCENT ADDITIONAL FIRST YEAR DEPRECIATION DEDUCTION DOES NOT APPLY

Tax Year Amount

1st Tax Year $3,160 2nd Tax Year $5,100 3rd Tax Year $3,050 Each Succeeding Year $1,875

REV. PROC. 2008–22 TABLE 4

DEPRECIATION LIMITATIONS FOR TRUCKS AND VANS PLACED IN SERVICE BY

THE TAXPAYER IN CALENDAR YEAR 2008, FOR WHICH THE 50-PERCENT

ADDITIONAL FIRST YEAR DEPRECIATION DEDUCTION APPLIES

Tax Year Amount

1st Tax Year $11,160 2nd Tax Year $5,100 3rd Tax Year $3,050 Each Succeeding Year $1,875

procedure in applying these procedures, while lessees of trucks and vans should use Table 6 of this revenue procedure.

.03 Inclusions in Income of Lessees of Passenger Automobiles .

The inclusion amounts for passenger automobiles first leased in calendar year

2008 are calculated under the procedures described in § 1.280F–7(a). Lessees of passenger automobiles other than trucks and vans should use Table 5 of this revenue

REV. PROC. 2008–22 TABLE 5
DOLLAR AMOUNTS FOR PASSENGER AUTOMOBILES
(THAT ARE NOT TRUCKS OR VANS)
WITH A LEASE TERM BEGINNING IN CALENDAR YEAR 2008

2008–12 I.R.B. 660 March 24, 2008

REV. PROC. 2008–22 TABLE 5—Continued
DOLLAR AMOUNTS FOR PASSENGER AUTOMOBILES
(THAT ARE NOT TRUCKS OR VANS)
WITH A LEASE TERM BEGINNING IN CALENDAR YEAR 2008

21,500
22,000
34
75
111
131
151
22,000
23,000
38
83
123
146
167
23,000
24,000
43
94
139
165
190
24,000
25,000
48
105
155
185
212
25,000
26,000
53
115
172
204
235
26,000
27,000
58
126
188
223
257
27,000
28,000
63
137
204
243
279
28,000
29,000
68
148
220
262
302
29,000
30,000
73
159
236
282
324
30,000
31,000
78
170
252
301
347
31,000
32,000
83
181
268
321
368
32,000
33,000
88
192
284
340
391
33,000
34,000
93
202
301
359
414
34,000
35,000
98
213
317
379
436
35,000
36,000
103
224
333
398
459
36,000
37,000
108
235
349
418
481
37,000
38,000
113
246
365
437
503
38,000
39,000
118
257
381
457
525
39,000
40,000
123
268
397
476
548
40,000
41,000
128
279
413
495
571
41,000
42,000
133
289
430
515
593
42,000
43,000
137
301
446
534
615
43,000
44,000
142
312
462
553
638
44,000
45,000
147
323
478
573
659
45,000
46,000
152
333
495
592
682
46,000
47,000
157
344
511
611
705
47,000
48,000
162
355
527
631
727
48,000
49,000
167
366
543
650
750
49,000
50,000
172
377
559
670
772
50,000
51,000
177
388
575
689
794
51,000
52,000
182
399
591
709
816
52,000
53,000
187
410
607
728
839
53,000
54,000
192
420
624
747
862
54,000
55,000
197
431
640
767
884
55,000
56,000
202
442
657
785
906
56,000
57,000
207
453
673
805
928
57,000
58,000
212
464
689
824
951
58,000
59,000
217
475
705
844
973
59,000
60,000
222
486
721
863
996
60,000
62,000
229
502
746
892
1,029
62,000
64,000
239
524
778
931
1,074
64,000
66,000
249
546
810
970
1,118
66,000
68,000
259
567
843
1,008
1,164
68,000
70,000
269
589
875
1,047
1,209
70,000
72,000
279
611
907
1,086
1,253
72,000
74,000
289
633
939
1,125
1,298
74,000
76,000
299
654
972
1,164
1,342
76,000
78,000
309
676
1,004
1,203
1,387
78,000
80,000
319
698
1,036
1,242
1,432
80,000
85,000
336
736
1,093
1,309
1,511
85,000
90,000
361
791
1,173
1,406
1,623
90,000
95,000
386
845
1,255
1,503
1,734
95,000
100,000
410
900
1,335
1,600
1,846
100,000
110,000
448
981
1,457
1,745
2,014

March 24, 2008 661 2008–12 I.R.B.

REV. PROC. 2008–22 TABLE 5—Continued
DOLLAR AMOUNTS FOR PASSENGER AUTOMOBILES
(THAT ARE NOT TRUCKS OR VANS)
WITH A LEASE TERM BEGINNING IN CALENDAR YEAR 2008

REV. PROC. 2008–22 TABLE 6
DOLLAR AMOUNTS FOR TRUCKS AND VANS
WITH A LEASE TERM BEGINNING IN CALENDAR YEAR 2008

REV. PROC. 2008–22 TABLE 5—Continued
DOLLAR AMOUNTS FOR PASSENGER AUTOMOBILES
(THAT ARE NOT TRUCKS OR VANS)
WITH A LEASE TERM BEGINNING IN CALENDAR YEAR 2008

35,000
93
203
301
360
414
35,000
36,000
98
214
317
379
437
36,000
37,000
103
225
333
399
459
37,000
38,000
108
235
350
418
482
38,000
39,000
113
246
366
437
505
39,000
40,000
118
257
382
457
526
40,000
41,000
123
268
398
476
549
41,000
42,000
128
279
414
496
571
42,000
43,000
133
290
430
515
594
43,000
44,000
137
301
447
534
616
44,000
45,000
142
312
463
553
639
45,000
46,000
147
323
479
573
661|$19,000
$19,500
17
37
54
65
73
19,500
20,000
20
42
63
73
85
20,000
20,500
22
48
70
84
96
20,500
21,000
25
53
79
93
107
21,000
21,500
27
59
86
103
118
21,500
22,000
30
64
95
112
130
22,000
23,000
33
72
107
128
146
23,000
24,000
38
83
123
147
168
24,000
25,000
43
94
139
166
191
25,000
26,000
48
105
155
186
213
26,000
27,000
53
116
171
205
236
27,000
28,000
58
127
187
225
258
28,000
29,000
63
138
204
243
280
29,000
30,000
68
148
221
263
302
30,000
31,000
73
159
237
282
325
31,000
32,000
78
170
253
301
348
32,000
33,000
83
181
269
321
370
33,000
34,000
88
192
285
340
393
34,000
35,000
93
203
301
360
414
35,000
36,000
98
214
317
379
437
36,000
37,000
103
225
333
399
459
37,000
38,000
108
235
350
418
482
38,000
39,000
113
246
366
437
505
39,000
40,000
118
257
382
457
526
40,000
41,000
123
268
398
476
549
41,000
42,000
128
279
414
496
571
42,000
43,000
133
290
430
515
594
43,000
44,000
137
301
447
534
616
44,000
45,000
142
312
463
553
639
45,000
46,000
147
323
479
573
661|$19,000
$19,500
17
37
54
65
73
19,500
20,000
20
42
63
73
85
20,000
20,500
22
48
70
84
96
20,500
21,000
25
53
79
93
107
21,000
21,500
27
59
86
103
118
21,500
22,000
30
64
95
112
130
22,000
23,000
33
72
107
128
146
23,000
24,000
38
83
123
147
168
24,000
25,000
43
94
139
166
191
25,000
26,000
48
105
155
186
213
26,000
27,000
53
116
171
205
236
27,000
28,000
58
127
187
225
258
28,000
29,000
63
138
204
243
280
29,000
30,000
68
148
221
263
302
30,000
31,000
73
159
237
282
325
31,000
32,000
78
170
253
301
348
32,000
33,000
83
181
269
321
370
33,000
34,000
88
192
285
340
393
34,000
35,000
93
203
301
360
414
35,000
36,000
98
214
317
379
437
36,000
37,000
103
225
333
399
459
37,000
38,000
108
235
350
418
482
38,000
39,000
113
246
366
437
505
39,000
40,000
118
257
382
457
526
40,000
41,000
123
268
398
476
549
41,000
42,000
128
279
414
496
571
42,000
43,000
133
290
430
515
594
43,000
44,000
137
301
447
534
616
44,000
45,000
142
312
463
553
639
45,000
46,000
147
323
479
573
661|

2008–12 I.R.B. 662 March 24, 2008

REV. PROC. 2008–22 TABLE 6—Continued
DOLLAR AMOUNTS FOR TRUCKS AND VANS
WITH A LEASE TERM BEGINNING IN CALENDAR YEAR 2008

46,000
47,000
152
334
495
592
684
47,000
48,000
157
345
511
612
705
48,000
49,000
162
356
527
631
728
49,000
50,000
167
366
544
651
750
50,000
51,000
172
377
560
670
773
51,000
52,000
177
388
576
689
796
52,000
53,000
182
399
592
709
817
53,000
54,000
187
410
608
728
840
54,000
55,000
192
421
624
748
862
55,000
56,000
197
432
640
767
885
56,000
57,000
202
443
656
787
907
57,000
58,000
207
453
673
806
929
58,000
59,000
212
464
689
825
952
59,000
60,000
217
475
705
845
974
60,000
62,000
224
492
729
874
1,008
62,000
64,000
234
513
762
913
1,052
64,000
66,000
244
535
794
951
1,098
66,000
68,000
254
557
826
990
1,142
68,000
70,000
264
579
858
1,029
1,187
70,000
72,000
274
600
892
1,067
1,232
72,000
74,000
284
622
924
1,106
1,276
74,000
76,000
294
644
956
1,145
1,321
76,000
78,000
304
666
988
1,184
1,366
78,000
80,000
314
687
1,021
1,222
1,411
80,000
85,000
331
726
1,077
1,290
1,489
85,000
90,000
356
780
1,158
1,387
1,601
90,000
95,000
381
835
1,238
1,484
1,713
95,000
100,000
405
889
1,320
1,581
1,825
100,000
110,000
443
971
1,440
1,727
1,993
110,000
120,000
492
1,080
1,602
1,921
2,216
120,000
130,000
542
1,189
1,764
2,114
2,440
130,000
140,000
592
1,297
1,926
2,308
2,665
140,000
150,000
641
1,407
2,087
2,502
2,888
150,000
160,000
691
1,515
2,249
2,696
3,112
160,000
170,000
740
1,625
2,410
2,890
3,336
170,000
180,000
790
1,733
2,573
3,083
3,560
180,000
190,000
840
1,842
2,734
3,278
3,783
190,000
200,000
889
1,951
2,896
3,472
4,007
200,000
210,000
939
2,060
3,058
3,665
4,231
210,000
220,000
989
2,169
3,219
3,859
4,455
220,000
230,000
1,038
2,278
3,381
4,053
4,678
230,000
240,000
1,088
2,387
3,542
4,247
4,903
240,000
and up
1,137
2,496
3,704
4,441
5,126

enue procedure, contact Bernard P. Harvey at (202) 622–4930 (not a toll-free call).