Highlights…
Senate Moves to Restrict Incentives for Big SUV’s
The Senate has moved to curb a tax
incentive that encourages small businesses to buy the
largest and most fuel-inefficient sport utility vehicles.
Owners of small businesses can now deduct up to $100,000 a
year for capital expenses, including everything from cars
to medical equipment to software.
Most auto purchase deductions, however, are capped at
$10,000 or less each year. But vehicles weighing 6,000
pounds or more fully loaded have no limit, be they pickup
trucks, vans or sport utility vehicles.
The Senate's proposal would cap deductions for S.U.V.'s at
$25,000 a year but leave the broader $100,000
small-business deduction unchanged. Deductions for large
pickup trucks and vans would not be affected.
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