26 U.S.C. § 280F | Limitation on depreciation for luxury automobiles; limitation where certain property used for personal purposes

(a)

Limitation on amount of depreciation for luxury automobiles

(1)

Depreciation

(A)

Limitation

The amount of the depreciation deduction for any taxable year for any passenger automobile shall not exceed—

(i)

$10,000 for the 1st taxable year in the recovery period,

(ii)

$16,000 for the 2nd taxable year in the recovery period,

(iii)

$9,600 for the 3rd taxable year in the recovery period, and

(iv)

$5,760 for each succeeding taxable year in the recovery period.

(B)

Disallowed deductions allowed for years after recovery period

(i)

In general

Except as provided in clause (ii), the unrecovered basis of any passenger automobile shall be treated as an expense for the 1st taxable year after the recovery period. Any excess of the unrecovered basis over the limitation of clause (ii) shall be treated as an expense in the succeeding taxable year.

(ii)

$5,760 limitation

The amount treated as an expense under clause (i) for any taxable year shall not exceed $5,760.

(iii)

Property must be depreciable

No amount shall be allowable as a deduction by reason of this subparagraph with respect to any property for any taxable year unless a depreciation deduction would be allowable with respect to such property for such taxable year.

(iv)

Amount treated as depreciation deduction

For purposes of this subtitle, any amount allowable as a deduction by reason of this subparagraph shall be treated as a depreciation deduction allowable under section 168.

(2)

Coordination with reductions in amount allowable by reason of personal use, etc.

This subsection shall be applied before—

(A)

the application of subsection (b), and

(B)

the application of any other reduction in the amount of any depreciation deduction allowable under section 168 by reason of any use not qualifying the property for such credit or depreciation deduction.

(b)

Limitation where business use of listed property not greater than 50 percent

(1)

Depreciation

If any listed property is not predominantly used in a qualified business use for any taxable year, the deduction allowed under section 168 with respect to such property for such taxable year and any subsequent taxable year shall be determined under section 168(g) (relating to alternative depreciation system).

(2)

Recapture

(A)

Where business use percentage does not exceed 50 percent

If—

(i)

property is predominantly used in a qualified business use in a taxable year in which it is placed in service, and

(ii)

such property is not predominantly used in a qualified business use for any subsequent taxable year,

then any excess depreciation shall be included in gross income for the taxable year referred to in clause (ii), and the depreciation deduction for the taxable year referred to in clause (ii) and any subsequent taxable years shall be determined under section 168(g) (relating to alternative depreciation system).

(B)

Excess depreciation

For purposes of subparagraph (A), the term “excess depreciation” means the excess (if any) of—

(i)

the amount of the depreciation deductions allowable with respect to the property for taxable years before the 1st taxable year in which the property was not predominantly used in a qualified business use, over

(ii)

the amount which would have been so allowable if the property had not been predominantly used in a qualified business use for the taxable year in which it was placed in service.

(3)

Property predominantly used in qualified business use

For purposes of this subsection, property shall be treated as predominantly used in a qualified business use for any taxable year if the business use percentage for such taxable year exceeds 50 percent.

(c)

Treatment of leases

(1)

Lessor’s deductions not affected

This section shall not apply to any listed property leased or held for leasing by any person regularly engaged in the business of leasing such property.

(2)

Lessee’s deductions reduced

For purposes of determining the amount allowable as a deduction under this chapter for rentals or other payments under a lease for a period of 30 days or more of listed property, only the allowable percentage of such payments shall be taken into account.

(3)

Allowable percentage

For purposes of paragraph (2), the allowable percentage shall be determined under tables prescribed by the Secretary. Such tables shall be prescribed so that the reduction in the deduction under paragraph (2) is substantially equivalent to the applicable restrictions contained in subsections (a) and (b).

(4)

Lease term

In determining the term of any lease for purposes of paragraph (2), the rules of section 168(i)(3)(A) shall apply.

(5)

Lessee recapture

Under regulations prescribed by the Secretary, rules similar to the rules of subsection (b)(3) shall apply to any lessee to which paragraph (2) applies.

(d)

Definitions and special rules

For purposes of this section—

(1)

Coordination with section 179

Any deduction allowable under section 179 with respect to any listed property shall be subject to the limitations of subsections (a) and (b), and the limitation of paragraph (3) of this subsection, in the same manner as if it were a depreciation deduction allowable under section 168.

(2)

Subsequent depreciation deductions reduced for deductions allocable to personal use

Solely for purposes of determining the amount of the depreciation deduction for subsequent taxable years, if less than 100 percent of the use of any listed property during any taxable year is use in a trade or business (including the holding for the production of income), all of the use of such property during such taxable year shall be treated as use so described.

(3)

Deductions of employee

(A)

In general

Any employee use of listed property shall not be treated as use in a trade or business for purposes of determining the amount of any depreciation deduction allowable to the employee (or the amount of any deduction allowable to the employee for rentals or other payments under a lease of listed property) unless such use is for the convenience of the employer and required as a condition of employment.

(B)

Employee use

For purposes of subparagraph (A), the term “employee use” means any use in connection with the performance of services as an employee.

(4)

Listed property

(A)

In general

Except as provided in subparagraph (B), the term “listed property” means—

(i)

any passenger automobile,

(ii)

any other property used as a means of transportation,

(iii)

any property of a type generally used for purposes of entertainment, recreation, or amusement, and

(iv)

any other property of a type specified by the Secretary by regulations.

(B)

Exception for property used in business of transporting persons or property

Except to the extent provided in regulations, clause (ii) of subparagraph (A) shall not apply to any property substantially all of the use of which is in a trade or business of providing to unrelated persons services consisting of the transportation of persons or property for compensation or hire.

(5)

Passenger automobile

(A)

In general

Except as provided in subparagraph (B), the term “passenger automobile” means any 4-wheeled vehicle—

(i)

which is manufactured primarily for use on public streets, roads, and highways, and

(ii)

which is rated at 6,000 pounds unloaded gross vehicle weight or less.

In the case of a truck or van, clause (ii) shall be applied by substituting “gross vehicle weight” for “unloaded gross vehicle weight”.

(B)

Exception for certain vehicles

The term “passenger automobile” shall not include—

(i)

any ambulance, hearse, or combination ambulance-hearse used by the taxpayer directly in a trade or business,

(ii)

any vehicle used by the taxpayer directly in the trade or business of transporting persons or property for compensation or hire, and

(iii)

under regulations, any truck or van.

(6)

Business use percentage

(A)

In general

The term “business use percentage” means the percentage of the use of any listed property during any taxable year which is a qualified business use.

(B)

Qualified business use

Except as provided in subparagraph (C), the term “qualified business use” means any use in a trade or business of the taxpayer.

(C)

Exception for certain use by 5-percent owners and related persons

(i)

In general

The term “qualified business use” shall not include—

(I)

leasing property to any 5-percent owner or related person,

(II)

use of property provided as compensation for the performance of services by a 5-percent owner or related person, or

(III)

use of property provided as compensation for the performance of services by any person not described in subclause (II) unless an amount is included in the gross income of such person with respect to such use, and, where required, there was withholding under chapter 24.

(ii)

Special rule for aircraft

Clause (i) shall not apply with respect to any aircraft if at least 25 percent of the total use of the aircraft during the taxable year consists of qualified business use not described in clause (i).

(D)

Definitions

For purposes of this paragraph—

(i)

5-percent owner

The term “5-percent owner” means any person who is a 5-percent owner with respect to the taxpayer (as defined in section 416(i)(1)(B)(i)).

(ii)

Related person

The term “related person” means any person related to the taxpayer (within the meaning of section 267(b)).

(7)

Automobile price inflation adjustment

(A)

In general

In the case of any passenger automobile placed in service after 2018, subsection (a) shall be applied by increasing each dollar amount contained in such subsection by the automobile price inflation adjustment for the calendar year in which such automobile is placed in service. Any increase under the preceding sentence shall be rounded to the nearest multiple of $100 (or if the increase is a multiple of $50, such increase shall be increased to the next higher multiple of $100).

(B)

Automobile price inflation adjustment

For purposes of this paragraph—

(i)

In general

The automobile price inflation adjustment for any calendar year is the percentage (if any) by which—

(I)

the C-CPI-U automobile component for October of the preceding calendar year, exceeds

(II)

the automobile component of the CPI (as defined in section 1(f)(4)) for October of 2017, multiplied by the amount determined under 1(f)(3)(B).

(ii)

C-CPI-U automobile component

The term “C-CPI-U automobile component” means the automobile component of the Chained Consumer Price Index for All Urban Consumers (as described in section 1(f)(6)).

(8)

Unrecovered basis

For purposes of subsection (a)(1), the term “unrecovered basis” means the adjusted basis of the passenger automobile determined after the application of subsection (a) and as if all use during the recovery period were use in a trade or business (including the holding of property for the production of income).

(9)

All taxpayers holding interests in passenger automobile treated as 1 taxpayer

All taxpayers holding interests in any passenger automobile shall be treated as 1 taxpayer for purposes of applying subsection (a) to such automobile, and the limitations of subsection (a) shall be allocated among such taxpayers in proportion to their interests in such automobile.

(10)

Special rule for property acquired in nonrecognition transactions

For purposes of subsection (a)(1) any property acquired in a nonrecognition transaction shall be treated as a single property originally placed in service in the taxable year in which it was placed in service after being so acquired.

(e)

Regulations

The Secretary shall prescribe such regulations as may be necessary or appropriate to carry out the purposes of this section, including regulations with respect to items properly included in, or excluded from, the adjusted basis of any listed property.

Pub. L. 98–369, div. A, title I, § 179(a)July 18, 198498 Stat. 713 Pub. L. 99–44, § 4May 24, 198599 Stat. 78 Pub. L. 99–514, title II, § 201(d)(4)Oct. 22, 1986100 Stat. 2139 Pub. L. 100–647, title INov. 10, 1988102 Stat. 3354 Pub. L. 101–239, title VII, § 7643(a)Dec. 19, 1989103 Stat. 2381 Pub. L. 101–508, title XI, § 11813(b)(13)(A)Nov. 5, 1990104 Stat. 1388–554 Pub. L. 104–188, title I, § 1702(h)(5)Aug. 20, 1996110 Stat. 1874 Pub. L. 105–34, title IX, § 971(a)Aug. 5, 1997111 Stat. 897 Pub. L. 105–206, title VI, § 6009(c)July 22, 1998112 Stat. 812 Pub. L. 107–147, title VI, § 602(b)(1)Mar. 9, 2002116 Stat. 59 Pub. L. 111–240, title II, § 2043(a)Sept. 27, 2010124 Stat. 2560 Pub. L. 113–295, div. A, title IIDec. 19, 2014128 Stat. 4036 Pub. L. 115–97, title IDec. 22, 2017131 Stat. 2061(Added , , ; amended , , ; , title XVIII, § 1812(e)(1)(A), (C), (2)–(5), , , 2836, 2837; , §§ 1002(a)(10), (b)(2), 1018(u)(3), , , 3357, 3590; , , ; –(E), , , 1388–555; , , ; , , ; , , ; , , ; , , ; , §§ 220(j), 221(a)(34)(E), , , 4042; , §§ 11002(d)(8), 13202(a), (b), , , 2108, 2109.)

Inflation Adjusted Items for Certain Calendar Years

For inflation adjustment of certain items in this section, see Revenue Procedures listed in a table below.

Editorial Notes

Amendments

Pub. L. 115–97, § 13202(a)(1)(A)2017—Subsec. (a)(1)(A)(i). , substituted “$10,000” for “$2,560”.

Pub. L. 115–97, § 13202(a)(1)(B)Subsec. (a)(1)(A)(ii). , substituted “$16,000” for “$4,100”.

Pub. L. 115–97, § 13202(a)(1)(C)Subsec. (a)(1)(A)(iii). , substituted “$9,600” for “$2,450”.

Pub. L. 115–97, § 13202(a)(1)(D)Subsec. (a)(1)(A)(iv). , substituted “$5,760” for “$1,475”.

Pub. L. 115–97, § 13202(a)(2)(A)Subsec. (a)(1)(B)(ii). , substituted “$5,760” for “$1,475” in heading and text.

Pub. L. 115–97, § 13202(b)(1)Subsec. (d)(4)(A)(iv), (v). , redesignated cl. (v) as (iv) and struck out former cl. (iv) which read as follows: “any computer or peripheral equipment (as defined in section 168(i)(2)(B)), ‘and’ ”.

Pub. L. 115–97, § 13202(b)(2)Subsec. (d)(4)(B), (C). , redesignated subpar. (C) as (B) and struck out former subpar. (B). Prior to amendment, text of subpar. (B) read as follows: “The term ‘listed property’ shall not include any computer or peripheral equipment (as so defined) used exclusively at a regular business establishment and owned or leased by the person operating such establishment. For purposes of the preceding sentence, any portion of a dwelling unit shall be treated as a regular business establishment if (and only if) the requirements of section 280A(c)(1) are met with respect to such portion.”

Pub. L. 115–97, § 13202(a)(2)(B)(i)Subsec. (d)(7)(A). , substituted “2018” for “1988”.

Pub. L. 115–97, § 11002(d)(8)Subsec. (d)(7)(B). , amended subpar. (B) generally. Prior to amendment, subpar. (B) related to automobile price inflation adjustment.

Pub. L. 115–97, § 13202(a)(2)(B)(ii)Subsec. (d)(7)(B)(i)(II). , substituted “2017” for “1987”.

Pub. L. 113–295, § 221(a)(34)(E)Aug. 5, 1997Jan. 1, 20072014—Subsec. (a)(1)(C). , struck out subpar. (C) which related to special rules for certain automobiles modified to be propelled by a clean burning fuel and for purpose built passenger vehicles that were placed in service between , and .

Pub. L. 113–295, § 220(j)Subsec. (d)(8), (10). , substituted “subsection (a)(1)” for “subsection (a)(2)”.

Pub. L. 111–2402010—Subsec. (d)(4)(A). inserted “ ‘and’ ” at end of clause (iv), redesignated clause (vi) as (v), and struck out former cl. (v) which read as follows: “any cellular telephone (or other similar telecommunications equipment), and”.

Pub. L. 107–1472002—Subsec. (a)(1)(C)(iii). added cl. (iii).

Pub. L. 105–2061998—Subsec. (a)(1)(C)(ii). substituted “subparagraphs (A) and (B)” for “subparagraph (A)”.

Pub. L. 105–341997—Subsec. (a)(1)(C). added subpar. (C).

Pub. L. 104–1881996—Subsec. (a). struck out “investment tax credit and” after “amount of” in heading.

Pub. L. 101–508, § 11813(b)(13)(E)1990—, struck out “investment tax credit and” after “Limitation on” in section catchline.

Pub. L. 101–508, § 11813(b)(13)(A)(i)Subsec. (a)(1). , redesignated par. (2) as (1) and struck out former par. (1) “Investment tax credit” which read as follows: “The amount of the credit determined under section 46(a) for any passenger automobile shall not exceed $675.”

Pub. L. 101–508, § 11813(b)(13)(A)(i)Subsec. (a)(2). , redesignated par. (3) as (2). Former par. (2) redesignated (1).

Pub. L. 101–508, § 11813(b)(13)(A)(ii)Subsec. (a)(2)(B). , struck out “the credit determined under section 46(a) or” after “the amount of”.

Pub. L. 101–508, § 11813(b)(13)(A)(i)Subsec. (a)(3). , redesignated par. (3) as (2).

Pub. L. 101–508, § 11813(b)(13)(A)(i)Subsec. (a)(4). , struck out par. (4) “Special rule where election of reduced credit in lieu of the basis adjustment” which read as follows: “In the case of any election under section 48(q)(4) with respect to any passenger automobile, the limitation of paragraph (1) applicable to such passenger automobile shall be ⅔ of the amount which would be so applicable but for this paragraph.”

Pub. L. 101–508, § 11813(b)(13)(B)Subsec. (b). , redesignated pars. (2) to (4) as (1) to (3), respectively, and struck out former par. (1) “Investment tax credit” which read as follows: “For purposes of this subtitle, any listed property shall not be treated as section 38 property for any taxable year unless such property is predominantly used in a qualified business use for such taxable year.”

Pub. L. 101–508, § 11813(b)(13)(C)Subsec. (c)(1). , struck out “credits and” after “Lessor’s” in heading.

Pub. L. 101–508, § 11813(b)(13)(D)Subsec. (d)(3)(A). , struck out “the amount of any credit allowable under section 38 to the employee or” after “of determining”.

Pub. L. 101–2391989—Subsec. (d)(4)(A)(v), (vi). added cl. (v) and redesignated former cl. (v) as (vi).

Pub. L. 100–647, § 1018(u)(3)1988—Subsec. (b)(3)(B)(i). , substituted “depreciation deductions” for “recovery deductions”.

Pub. L. 100–647, § 1002(b)(2)Subsec. (d)(1). , substituted “subsections (a) and (b), and the limitation of paragraph (3) of this subsection,” for “subsections (a) and (b)”.

Pub. L. 100–647, § 1002(a)(10)Subsec. (d)(3)(A). , substituted “depreciation deduction” for “recovery deduction”.

Pub. L. 99–514, § 201(d)(4)(A)(i)1986—Subsec. (a)(2)(A). , (K), substituted “depreciation deduction” for “recovery deduction” in introductory provisions and substituted cls. (i) to (iv) for former cls. (i) and (ii) which read as follows:

“(i) $3,200 for the first taxable year in the recovery period, and

“(ii) $4,800 for each succeeding taxable year in the recovery period.”

Pub. L. 99–514, § 201(d)(4)(A)(ii)Subsec. (a)(2)(B). , (K), substituted “$1,475” for “$4,800” in heading and text of cl. (ii), and “depreciation deduction” for “recovery deduction” in heading and text of cl. (iv).

Pub. L. 99–514, § 201(d)(4)(K)Subsec. (a)(3)(B). , substituted “depreciation deduction” for “recovery deduction” in two places.

Pub. L. 99–514, § 201(d)(4)(J)Subsec. (b)(2). , substituted “section 168(g) (relating to alternative depreciation system)” for “the straight line method over the earnings and profits life for such property”.

Pub. L. 99–514, § 201(d)(4)(B)Subsec. (b)(3)(A). , (K), substituted “depreciation deduction” for “recovery deduction” and “section 168(g) (relating to alternative depreciation system)” for “the straight line method over the earnings and profits life” in closing provisions.

Pub. L. 99–514, § 201(d)(4)(C)Subsec. (b)(4). , in amending par. (4) generally, struck out heading “Definitions”, redesignated as par. (4) former subpar. (A) heading and text, substituted “For purposes of this section, property” for “Property”, and struck out former subpar. (B) definition of straight line method over earnings and profits life.

Pub. L. 99–514, § 201(d)(4)(D)Subsec. (c)(4). , substituted “section 168(i)(3)(A)” for “section 168(j)(6)(B)”.

Pub. L. 99–514, § 201(d)(4)(E)Subsec. (d)(1). , substituted “depreciation deduction” for “recovery deduction”.

Pub. L. 99–514, § 1812(e)(5)Subsec. (d)(2). , substituted “is use described in” for “is not use described in”.

Pub. L. 99–514, § 201(d)(4)(F), substituted “depreciation deduction” for “recovery deduction” and “use in a trade or business (including the holding for the production of income)” for “use described in section 168(c)(1) (defining recovery property)”.

Pub. L. 99–514, § 1812(e)(2)Subsec. (d)(3)(A). , inserted “(or the amount of any deduction allowable to the employee for rentals or other payments under a lease of listed property)”.

Pub. L. 99–514, § 201(d)(4)(G)Subsec. (d)(4)(A)(iv). , substituted “section 168(i)(2)(B)” for “section 168(j)(5)(D)”.

Pub. L. 99–514, § 1812(e)(3)Subsec. (d)(4)(B). , inserted “and owned or leased by the person operating such establishment”.

Pub. L. 99–514, § 1812(e)(4)Subsec. (d)(4)(C). , added subpar. (C).

Pub. L. 99–514, § 1812(e)(1)(A)Subsec. (d)(5)(A). , (C), substituted “unloaded gross vehicle weight” for “gross vehicle weight” in cl. (ii) and inserted at end “In the case of a truck or van, clause (ii) shall be applied by substituting ‘gross vehicle weight’ for ‘unloaded gross vehicle weight’.”

Pub. L. 99–514, § 201(d)(4)(H)Subsec. (d)(8). , amended par. (8) generally. Prior to amendment, par. (8) read as follows: “For purposes of subsection (a)(2), the term ‘unrecovered basis’ means the excess (if any) of—

“(A) the unadjusted basis (as defined in section 168(d)(1)(A)) of the passenger automobile, over

“(B) the amount of the recovery deductions which would have been allowable for taxable years in the recovery period determined after the application of subsection (a) and as if all use during the recovery period were use described in section 168(c)(1).”

Pub. L. 99–514, § 201(d)(4)(I)Subsec. (d)(10). , struck out “, notwithstanding any regulations prescribed under section 168(f)(7),” after “For purposes of subsection (a)(2)”.

Pub. L. 99–44, § 4(a)(1)1985—Subsec. (a)(1). , substituted “$675” for “$1,000”.

Pub. L. 99–44, § 4(a)(2)(A)Subsec. (a)(2)(A)(i). , substituted “$3,200” for “$4,000”.

Pub. L. 99–44, § 4(a)(2)(B)Subsec. (a)(2)(A)(ii), (B)(ii). , substituted “$4,800” for “$6,000” wherever appearing in text and heading.

Pub. L. 99–44, § 4(b)(1)Subsec. (d)(7)(A). , inserted “placed in service after 1988” after “passenger automobile”.

Pub. L. 99–44, § 4(b)(3)Subsec. (d)(7)(B)(i). , struck out last sentence which directed that in the case of calendar year 1984, the automobile price inflation adjustment would be zero.

Pub. L. 99–44, § 4(b)(2)Subsec. (d)(7)(B)(i)(II). , substituted “1987” for “1983”.

Statutory Notes and Related Subsidiaries

Effective Date of 2017 Amendment

section 11002(d)(8) of Pub. L. 115–97Dec. 31, 2017section 11002(e) of Pub. L. 115–97 section 1 of this titleAmendment by applicable to taxable years beginning after , see , set out as a note under .

Pub. L. 115–97, title I, § 13202(c)Dec. 22, 2017131 Stat. 2109

December 31, 2017“The amendments made by this section [amending this section] shall apply to property placed in service after , in taxable years ending after such date.”

, , , provided that:

Effective Date of 2014 Amendment

section 221(a)(34)(E) of Pub. L. 113–295Dec. 19, 2014section 221(b) of Pub. L. 113–295 section 1 of this titleAmendment by effective , subject to a savings provision, see , set out as a note under .

Effective Date of 2010 Amendment

Pub. L. 111–240, title II, § 2043(b)Sept. 27, 2010124 Stat. 2560

December 31, 2009“The amendment made by this section [amending this section] shall apply to taxable years beginning after .”

, , , provided that:

Effective Date of 2002 Amendment

Pub. L. 107–147, title VI, § 602(c)Mar. 9, 2002116 Stat. 59

section 30 of this titleDecember 31, 2001“The amendments made by this section [amending this section, , and provisions set out as a note under this section] shall apply to property placed in service after .”

, , , provided that:

Effective Date of 1998 Amendment

Pub. L. 105–206 Pub. L. 105–34 section 6024 of Pub. L. 105–206 section 1 of this titleAmendment by effective, except as otherwise provided, as if included in the provisions of the Taxpayer Relief Act of 1997, , to which such amendment relates, see , set out as a note under .

Effective Date of 1997 Amendment

Pub. L. 105–34, title IX, § 971(b)Aug. 5, 1997111 Stat. 897 Pub. L. 107–147, title VI, § 602(b)(2)Mar. 9, 2002116 Stat. 59

Aug. 5, 1997“The amendments made by this section [amending this section] shall apply to property placed in service after the date of enactment of this Act [].”

, , , as amended by , , , provided that:

Effective Date of 1996 Amendment

Pub. L. 104–188 Pub. L. 101–508, title XI section 1702(i) of Pub. L. 104–188 section 38 of this titleAmendment by effective, except as otherwise expressly provided, as if included in the provision of the Revenue Reconciliation Act of 1990, , to which such amendment relates, see , set out as a note under .

Effective Date of 1990 Amendment

Pub. L. 101–508Dec. 31, 1990section 49(e) of this title section 46(d) of this title section 46(b)(2)(C) of this titleNov. 4, 1990section 11813(c) of Pub. L. 101–508 section 45K of this titleAmendment by applicable to property placed in service after , but not applicable to any transition property (as defined in ), any property with respect to which qualified progress expenditures were previously taken into account under , and any property described in , as such sections were in effect on , see , set out as a note under .

Effective Date of 1989 Amendment

Pub. L. 101–239, title VII, § 7643(b)Dec. 19, 1989103 Stat. 2381

December 31, 1989“The amendment made by subsection (a) [amending this section] shall apply to property placed in service or leased in taxable years beginning after .”

, , , provided that:

Effective Date of 1988 Amendment

Pub. L. 100–647 Pub. L. 99–514 section 1019(a) of Pub. L. 100–647 section 1 of this titleAmendment by effective, except as otherwise provided, as if included in the provision of the Tax Reform Act of 1986, , to which such amendment relates, see , set out as a note under .

Effective Date of 1986 Amendment

section 201(d)(4) of Pub. L. 99–514Dec. 31, 1986Pub. L. 99–514 section 168 of this titleAmendment by applicable to property placed in service after , in taxable years ending after such date, with exceptions, see sections 203 and 204 of , set out as a note under .

section 201(d)(4) of Pub. L. 99–514Jan. 1, 1994Pub. L. 99–514 section 46 of this titleAmendment by not applicable to any property placed in service before , if such property placed in service as part of specified rehabilitations, and not applicable to certain additional rehabilitations, see section 251(d)(2), (3) of , set out as a note under .

Pub. L. 99–514 Pub. L. 98–369, div. A section 1881 of Pub. L. 99–514 section 48 of this titleAmendment by section 1812(e)(1)(A), (C), (2)–(5) of effective, except as otherwise provided, as if included in the provisions of the Tax Reform Act of 1984, , to which such amendment relates, see , set out as a note under .

Effective Date of 1985 Amendment

Pub. L. 99–44, § 6(e)May 24, 198599 Stat. 79

“(1)

Except as provided in paragraph (2), the amendments made by section 4 [amending this section] shall apply to—

“(A)

April 2, 1985 property placed in service after , in taxable years ending after such date, and

“(B)

April 2, 1985 property leased after , in taxable years ending after such date.

“(2)

The amendments made by section 4 [amending this section] shall not apply to any property—

“(A)

April 1, 1985August 1, 1985 acquired by the taxpayer pursuant to a binding contract in effect on , and at all times thereafter, but only if the property is placed in service before , or

“(B)

April 1, 1985August 1, 1985 of which the taxpayer is the lessee, but only if the lease is pursuant to a binding contract in effect on , and at all times thereafter, and only if the taxpayer first uses such property under the lease before .”

, , , provided that:

Effective Date

Pub. L. 98–369, div. A, title I, § 179(d)July 18, 198498 Stat. 719

“(1)

In general.—

“(A)

Except as provided in subparagraph (B), the amendments made by subsections (a) and (c) [enacting this section] shall apply to—

“(i)

June 18, 1984 property placed in service after , in taxable years ending after such date, and

“(ii)

June 18, 1984 property leased after , in taxable years ending after such date.

“(B)

The amendments made by subsections (a) and (c) shall not apply to any property—

“(i)

June 18, 1984January 1, 1985January 1, 1987 acquired by the taxpayer pursuant to a binding contract in effect on , and at all times thereafter (or under construction on such date) but only if the property is placed in service before (, in the case of 15-year real property), or

“(ii)

June 18, 1984January 1, 1985January 1, 1987 of which the taxpayer is the lessee but only if the lease is pursuant to a binding contract in effect on , and at all times thereafter and only if the taxpayer first uses such property under the lease before (, in the case of 15-year real property).

For purposes of the preceding sentence, the term ‘15-year real property’ includes 18-year real property.

“(2)

Compliance provisions .—

December 31, 1984The amendments made by subsection (b) [amending sections 274, 6653, and 6695 of this title] shall apply to taxable years beginning after .”

, , , provided that:

Savings Provision

Pub. L. 101–508Nov. 5, 1990Nov. 5, 1990section 11821(b) of Pub. L. 101–508 section 45K of this titleFor provisions that nothing in amendment by be construed to affect treatment of certain transactions occurring, property acquired, or items of income, loss, deduction, or credit taken into account prior to , for purposes of determining liability for tax for periods ending after , see , set out as a note under .

Plan Amendments Not Required Until January 1, 1989

Pub. L. 99–514Jan. 1, 1989section 1140 of Pub. L. 99–514 section 401 of this titleFor provisions directing that if any amendments made by subtitle A or subtitle C of title XI [§§ 1101–1147 and 1171–1177] or title XVIII [§§ 1800–1899A] of require an amendment to any plan, such plan amendment shall not be required to be made before the first plan year beginning on or after , see , as amended, set out as a note under .

Inflation Adjusted Items for Certain Years

Provisions relating to inflation adjustment of items in this section for certain years were contained in the following:

2024—Revenue Procedure 2024–13.

2023—Revenue Procedure 2023–14.

2022—Revenue Procedure 2022–17.

2021—Revenue Procedure 2021–31.

2020—Revenue Procedure 2020–37.

2019—Revenue Procedure 2019–26.

2018—Revenue Procedure 2018–25.

2017—Revenue Procedure 2017–29.

2016—Revenue Procedure 2016–23.

2015—Revenue Procedure 2015–19.

2014—Revenue Procedure 2014–21.

2013—Revenue Procedure 2013–21.

2012—Revenue Procedure 2012–23.

2011—Revenue Procedure 2011–21.

2010—Revenue Procedure 2010–18.

2009—Revenue Procedure 2009–24.

2008—Revenue Procedure 2008–22.

2007—Revenue Procedure 2007–30.

2006—Revenue Procedure 2006–18.

2005—Revenue Procedure 2005–13.

2004—Revenue Procedure 2004–20.

2003—Revenue Procedure 2003–75.

2002—Revenue Procedure 2002–14.

2001—Revenue Procedure 2001–19.

2000—Revenue Procedure 2000–18.

1999—Revenue Procedure 99–14.

1998—Revenue Procedures 98–24 and 98–30.

1997—Revenue Procedure 97–20.

1996—Revenue Procedure 96–25.