SECTION 4. APPLICATION

.01 Limitations on Depreciation Deductions for Certain Automobiles .

(1) Amount of the inflation adjustment .

(a) Passenger automobiles (other than trucks or vans) . 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. Section 280F(d)(7)(B)(ii) defines the term “CPI automobile component” as the automobile component of the Consumer Price Index for all Urban Consumers published by the

Department of Labor. The new car component of the CPI was 115.2 for October 1987 and 143.032 for October 2016. The October 2016 index exceeded the October 1987 index by 27.832. Therefore, the automobile price inflation adjustment for 2017 for passenger automobiles (other than trucks and vans) is 24.2 percent (27.832/115.2 x 100%). The dollar limitations in § 280F(a) are multiplied by a factor of 0.242, 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 2017. This adjustment applies to all passenger automobiles (other than trucks and vans) that are first placed in service in calendar year 2017.

(b) Trucks and vans . To determine the dollar limitations for trucks and vans first placed in service during calendar year 2017, the Service uses the new truck component of the CPI instead of the new car component. The new truck component of the CPI was 112.4 for October 1987 and 156.189 for October 2016. The October 2016 index exceeded the October 1987 index by 43.789. Therefore, the automobile price inflation adjustment for 2017 for trucks and vans is 39.0 percent (43.789/ 112.4 x 100%). The dollar limitations in § 280F(a) are multiplied by a factor of 0.390, 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. This adjustment applies to all trucks and vans that are first placed in service in calendar year 2017.

(2) Amount of the limitation . Tables 1 and 2 contain the dollar amount of the depreciation limitation for each taxable year for passenger automobiles a taxpayer places in service in calendar year 2017. Use Table 1 for a passenger automobile (other than a truck or van), and Table 2 for a truck or van, placed in service in calendar year 2017 for which the § 168(k) additional first year depreciation deduction applies. Use Table 3 for a passenger automobile (other than a truck or van), and Table 4 for a truck or van, placed in service in calendar year 2017 for which the § 168(k) additional first year depreciation deduction does not apply.

DEPRECIATION LIMITATIONS FOR PASSENGER AUTOMOBILES (THAT ARE NOT TRUCKS OR VANS)

PLACED IN SERVICE IN CALENDAR YEAR 2017 FOR WHICH THE § 168(k) 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

REV. PROC. 2017–29 TABLE 2

DEPRECIATION LIMITATIONS FOR TRUCKS AND VANS PLACED IN SERVICE IN CALENDAR YEAR 2017

FOR WHICH THE § 168(k) ADDITIONAL FIRST YEAR DEPRECIATION DEDUCTION APPLIES

Tax Year Amount

1st Tax Year $ 11,560

2nd Tax Year $ 5,700

3rd Tax Year $ 3,450

Each Succeeding Year $ 2,075

April 3, 2017 1066 Bulletin No. 2017–14

REV. PROC. 2017–29 TABLE 3

DEPRECIATION LIMITATIONS FOR PASSENGER AUTOMOBILES (THAT ARE NOT TRUCKS OR VANS)

PLACED IN SERVICE IN CALENDAR YEAR 2017 FOR WHICH THE § 168(k) 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. 2017–29 TABLE 4

DEPRECIATION LIMITATIONS FOR TRUCKS AND VANS PLACED IN SERVICE IN CALENDAR YEAR 2017

FOR WHICH THE § 168(k) ADDITIONAL FIRST YEAR DEPRECIATION DEDUCTION DOES NOT APPLY

Tax Year Amount

1st Tax Year $ 3,560

2nd Tax Year $ 5,700

3rd Tax Year $ 3,450

Each Succeeding Year $ 2,075

.02 Inclusions in Income of Lessees of Passenger Automobiles .

A taxpayer must follow the procedures in § 1.280F–7(a) for determining the inclusion

amounts for passenger automobiles first leased in calendar year 2017. In applying these procedures, lessees of passenger automobiles other than trucks and vans should use Table 5 of this revenue procedure, while lessees of trucks and vans should use Table 6 of this revenue procedure.

DOLLAR AMOUNTS FOR PASSENGER AUTOMOBILES

(THAT ARE NOT TRUCKS OR VANS) WITH A LEASE TERM BEGINNING IN CALENDAR YEAR 2017 Fair Market Value of Passenger Automobile Tax Year During Lease Over Not Over 1 ^st 2 ^nd 3 ^rd 4 ^th 5 ^th & later

$19,000 $19,500 6 14 20 23 27

19,500 20,000 7 16 23 27 31

20,000 20,500 8 18 26 30 35

20,500 21,000 9 20 28 35 39

21,000 21,500 10 21 32 38 44

21,500 22,000 11 23 35 42 47

22,000 23,000 12 27 39 47 53

23,000 24,000 14 31 45 54 62

24,000 25,000 16 34 52 61 70

25,000 26,000 18 38 58 68 78

26,000 27,000 19 43 63 75 87

27,000 28,000 21 47 69 82 95

28,000 29,000 23 51 75 89 103

29,000 30,000 25 55 80 97 112

30,000 31,000 27 58 87 104 120

31,000 32,000 29 62 93 111 128

32,000 33,000 30 67 99 118 136

Bulletin No. 2017–14 1067 April 3, 2017

REV. PROC. 2017–29 TABLE 5

DOLLAR AMOUNTS FOR PASSENGER AUTOMOBILES

(THAT ARE NOT TRUCKS OR VANS) WITH A LEASE TERM BEGINNING IN CALENDAR YEAR 2017 Fair Market Value of Passenger Automobile Tax Year During Lease Over Not Over 1 ^st 2 ^nd 3 ^rd 4 ^th 5 ^th & later

33,000 34,000 32 71 104 126 144

34,000 35,000 34 75 110 133 152

35,000 36,000 36 79 116 140 160

36,000 37,000 38 82 123 147 169

37,000 38,000 40 86 129 154 177

38,000 39,000 41 91 134 161 186

39,000 40,000 43 95 140 168 194

40,000 41,000 45 99 146 175 202

41,000 42,000 47 103 152 182 210

42,000 43,000 49 106 159 189 218

43,000 44,000 50 111 164 197 226

44,000 45,000 52 115 170 204 234

45,000 46,000 54 119 176 211 243

46,000 47,000 56 123 182 218 251

47,000 48,000 58 127 187 225 260

48,000 49,000 60 130 194 232 268

49,000 50,000 61 135 200 239 276

50,000 51,000 63 139 206 246 284

51,000 52,000 65 143 211 254 292

52,000 53,000 67 147 217 261 301

53,000 54,000 69 151 223 268 309

54,000 55,000 70 155 229 275 318

55,000 56,000 72 159 235 282 326

56,000 57,000 74 163 241 289 334

57,000 58,000 76 167 247 296 342

58,000 59,000 78 171 253 303 350

59,000 60,000 80 174 260 310 359

60,000 62,000 82 181 268 321 371

62,000 64,000 86 189 280 335 387

64,000 66,000 90 197 292 349 404

66,000 68,000 93 205 304 364 420

68,000 70,000 97 213 315 379 436

70,000 72,000 101 221 327 393 453

72,000 74,000 104 229 339 407 470

74,000 76,000 108 237 351 421 486

76,000 78,000 111 245 363 436 502

78,000 80,000 115 253 375 450 518

80,000 85,000 122 267 396 474 548

85,000 90,000 131 287 425 511 588

90,000 95,000 140 307 455 546 630

95,000 100,000 149 327 485 581 671

April 3, 2017 1068 Bulletin No. 2017–14

REV. PROC. 2017–29 TABLE 5

DOLLAR AMOUNTS FOR PASSENGER AUTOMOBILES

(THAT ARE NOT TRUCKS OR VANS) WITH A LEASE TERM BEGINNING IN CALENDAR YEAR 2017 Fair Market Value of Passenger Automobile Tax Year During Lease Over Not Over 1 ^st 2 ^nd 3 ^rd 4 ^th 5 ^th & later

100,000 110,000 162 357 530 635 733

110,000 120,000 181 397 589 706 815

120,000 130,000 199 437 649 777 898

130,000 140,000 217 477 708 849 980

140,000 150,000 235 517 768 920 1,062

150,000 160,000 254 557 827 991 1,145

160,000 170,000 272 597 887 1,062 1,227

170,000 180,000 290 637 946 1,134 1,309

180,000 190,000 308 677 1,006 1,205 1,391

190,000 200,000 326 718 1,064 1,277 1,473

200,000 210,000 345 757 1,124 1,348 1,556

210,000 220,000 363 797 1,184 1,419 1,638

220,000 230,000 381 837 1,244 1,490 1,721

230,000 240,000 399 878 1,302 1,562 1,803

240,000 and over 418 917 1,362 1,633 1,885

REV. PROC. 2017–29 TABLE 6

DOLLAR AMOUNTS FOR TRUCKS AND VANS WITH A LEASE TERM BEGINNING IN CALENDAR YEAR 2017 Fair Market Value of

Truck or Van Tax Year During Lease Over Not Over 1 ^st 2 ^nd 3 ^rd 4 ^th 5 ^th & later

$19,500 $20,000 4 8 11 13 16

20,000 20,500 4 10 14 17 20

20,500 21,000 5 12 17 21 23

21,000 21,500 6 14 20 24 28

21,500 22,000 7 16 23 28 32

22,000 23,000 9 19 27 33 38

23,000 24,000 10 23 34 40 46

24,000 25,000 12 27 39 48 54

25,000 26,000 14 31 45 55 62

26,000 27,000 16 35 51 62 71

27,000 28,000 18 39 57 69 79

28,000 29,000 19 43 63 76 88

29,000 30,000 21 47 69 83 96

30,000 31,000 23 51 75 90 104

31,000 32,000 25 55 81 97 112

32,000 33,000 27 59 87 104 120

33,000 34,000 29 63 93 111 129

34,000 35,000 30 67 99 119 136

Bulletin No. 2017–14 1069 April 3, 2017

REV. PROC. 2017–29 TABLE 6

DOLLAR AMOUNTS FOR TRUCKS AND VANS WITH A LEASE TERM BEGINNING IN CALENDAR YEAR 2017 Fair Market Value of

Truck or Van Tax Year During Lease Over Not Over 1 ^st 2 ^nd 3 ^rd 4 ^th 5 ^th & later

35,000 36,000 32 71 105 126 145

36,000 37,000 34 75 111 133 153

37,000 38,000 36 79 117 140 161

38,000 39,000 38 83 122 148 169

39,000 40,000 40 87 128 155 177

40,000 41,000 41 91 135 161 186

41,000 42,000 43 95 141 168 194

42,000 43,000 45 99 146 176 203

43,000 44,000 47 103 152 183 211

44,000 45,000 49 107 158 190 219

45,000 46,000 50 111 165 196 228

46,000 47,000 52 115 170 204 236

47,000 48,000 54 119 176 211 244

48,000 49,000 56 123 182 218 252

49,000 50,000 58 127 188 225 261

50,000 51,000 60 131 194 232 269

51,000 52,000 61 135 200 240 277

52,000 53,000 63 139 206 247 285

53,000 54,000 65 143 212 254 293

54,000 55,000 67 147 218 261 301

55,000 56,000 69 151 224 268 309

56,000 57,000 70 155 230 275 318

57,000 58,000 72 159 236 282 326

58,000 59,000 74 163 242 289 335

59,000 60,000 76 167 248 296 343

60,000 62,000 79 173 256 308 355

62,000 64,000 82 181 269 321 372

64,000 66,000 86 189 280 336 388

66,000 68,000 90 197 292 350 404

68,000 70,000 93 205 304 365 420

70,000 72,000 97 213 316 379 437

72,000 74,000 101 221 328 393 453

74,000 76,000 104 229 340 407 470

76,000 78,000 108 237 352 421 487

78,000 80,000 111 245 364 436 503

80,000 85,000 118 259 384 461 532

85,000 90,000 127 279 414 497 573

90,000 95,000 136 299 444 532 614

95,000 100,000 145 319 474 567 656

100,000 110,000 159 349 518 621 717

110,000 120,000 177 389 578 692 800

120,000 130,000 195 429 637 764 882

April 3, 2017 1070 Bulletin No. 2017–14

REV. PROC. 2017–29 TABLE 6

DOLLAR AMOUNTS FOR TRUCKS AND VANS WITH A LEASE TERM BEGINNING IN CALENDAR YEAR 2017 Fair Market Value of

Truck or Van Tax Year During Lease Over Not Over 1 ^st 2 ^nd 3 ^rd 4 ^th 5 ^th & later

130,000 140,000 213 470 696 835 964

140,000 150,000 232 509 756 906 1,047

150,000 160,000 250 549 816 977 1,129

160,000 170,000 268 589 875 1,049 1,211

170,000 180,000 286 630 934 1,120 1,293

180,000 190,000 305 669 994 1,191 1,376

190,000 200,000 323 709 1,054 1,262 1,458

200,000 210,000 341 750 1,112 1,334 1,540

210,000 220,000 359 790 1,172 1,405 1,623

220,000 230,000 377 830 1,231 1,477 1,705

230,000 240,000 396 870 1,290 1,548 1,787

240,000 and over 414 910 1,350 1,619 1,870