Home / Auto News / News article: New IRS Rules Give Businesses 100% Tax Deduction on Big Truck Purchases This Year - AutoGuide.com News
 |  May 16 2011, 8:38 AM

While the Obama Administration is pushing for a 62-mpg CAFE regulation, promoting small, green cars, the IRS has a plan to get owners of businesses behind the wheel of a gas guzzling behemoth.

In what appears to be a plan to stimulate the economy, the IRS has announced new tax rules for companies that make buying a big truck a more economically feasible decision. New tax deduction rules improve the more you spend, and even go up if you’re truck of choice weighs over 6,000 lbs.

So if you are looking at buying a big truck, like a Cadillac Escalade or Infiniti QX56 (above), the new rules will let you deduct 100% of the car’s value in the first year (subject to a personal use disallowance – essentially meaning it has to be used exclusively for work). The amount of depreciation that can be deducted also varies on the cost of the vehicle, with more expensive machines paired with much more significant deductions. According to figures in the Wall Street Journal, for any vehicle under 6,000 lbs and the first year depreciation deduction is $11,060, but the deduction for following years is much more significant for more expensive vehicle, with a $4,900 second year deduction for a vehicle over $31,000 compared to a $3,200 deduction for a vehicle costing under $20,000.

While this move by the IRS does seem to go against a push for fuel efficient cars by the government, there is an economic policy behind it, helping to promote purchases of large trucks by businesses. The new rules apply to vehicles bought after Sept.8 2010 and up until Jan. 1, 2012.

[Source: WSJ]

See a list of 2011 model year trucks that apply for the bonus credit, as compiled by GMI, after the jump:

 

2011 Audi Q7 3.0L TDI
2011 BMW X5 M
2011 BMW X5 XDRIVE35D
2011 BMW X6 HYBRID
2011 BMW X6 M
2011 Buick ENCLAVE 2WD
2011 Buick ENCLAVE 4WD
2011 Cadillac ESCALADE 2WD
2011 Cadillac ESCALADE AWD
2011 Cadillac ESCALADE HYBRID
2011 Cadillac ESCALADE HYBRID
2011 Chevrolet Truck AVALANCHE 2WD
2011 Chevrolet Truck AVALANCHE 4WD
2011 Chevrolet Truck EXPRESS CARGO
2011 Chevrolet Truck EXPRESS CARGO
2011 Chevrolet Truck EXPRESS WAGON
2011 Chevrolet Truck EXPRESS WAGON
2011 Chevrolet Truck SILVERADO C1500
2011 Chevrolet Truck SILVERADO C1500
2011 Chevrolet Truck SILVERADO C2500
2011 Chevrolet Truck SILVERADO C3500
2011 Chevrolet Truck SILVERADO K1500
2011 Chevrolet Truck SILVERADO K1500
2011 Chevrolet Truck SILVERADO K2500
2011 Chevrolet Truck SILVERADO K3500
2011 Chevrolet Truck SUBURBAN C1500
2011 Chevrolet Truck SUBURBAN K1500
2011 Chevrolet Truck TAHOE 2WD LS
2011 Chevrolet Truck TAHOE 4WD LS
2011 Chevrolet Truck TAHOE HYBRID
2011 Chevrolet Truck TAHOE HYBRID
2011 Chevrolet Truck TRAVERSE 2WD
2011 Chevrolet Truck TRAVERSE 4WD
2011 Dodge Truck DAKOTA 2WD
2011 Dodge Truck DAKOTA 4WD
2011 Dodge Truck DURANGO 2WD
2011 Dodge Truck DURANGO 4WD
2011 Dodge Truck RAM 2WD 1500
2011 Dodge Truck RAM 2WD 2500
2011 Dodge Truck RAM 2WD 3500
2011 Dodge Truck RAM 4WD 1500
2011 Dodge Truck RAM 4WD 2500
2011 Dodge Truck RAM 4WD 3500
2011 Ford Truck ECONOLINE CARGO
2011 Ford Truck EXPEDITION 2WD
2011 Ford Truck EXPEDITION 4WD
2011 Ford Truck EXPLORER 2WD
2011 Ford Truck EXPLORER 4WD
2011 Ford Truck F-150 2WD
2011 Ford Truck F-250 2WD
2011 Ford Truck F-250 4WD
2011 Ford Truck F-350 2WD
2011 Ford Truck F-350 4WD
2011 Ford Truck FLEX 4WD
2011 GMC ACADIA 2WD
2011 GMC ACADIA 4WD
2011 GMC SAVANA CARGO
2011 GMC SAVANA CARGO
2011 GMC SAVANA WAGON
2011 GMC SAVANA WAGON
2011 GMC SIERRA C1500
2011 GMC SIERRA C1500
2011 GMC SIERRA C1500
2011 GMC SIERRA C2500 HD
2011 GMC SIERRA C2500 HD
2011 GMC SIERRA C3500 HD
2011 GMC SIERRA C3500 HD
2011 GMC SIERRA K1500
2011 GMC SIERRA K1500
2011 GMC SIERRA K1500
2011 GMC SIERRA K2500 HD
2011 GMC SIERRA K2500 HD
2011 GMC SIERRA K3500 HD
2011 GMC SIERRA K3500 HD
2011 GMC YUKON 2WD
2011 GMC YUKON 4WD
2011 GMC YUKON HYBRID
2011 GMC YUKON HYBRID
2011 GMC YUKON XL C1500
2011 GMC YUKON XL K1500
2011 Honda PILOT 4WD
2011 Honda RIDGELINE RT
2011 Infiniti QX56 2WD
2011 Infiniti QX56 4WD
2011 Jeep GRAND CHEROKEE
2011 Jeep GRAND CHEROKEE
2011 Land Rover LR4
2011 Land Rover RANGE ROVER 4WD
2011 Land Rover RANGE ROVER SPT
2011 Lexus GX460
2011 Lexus LX570
2011 Lincoln MKT AWD
2011 Lincoln MKT
2011 Lincoln NAVIGATOR 2WD
2011 Lincoln NAVIGATOR 4WD
2011 Mercedes Benz G55 AMG
2011 Mercedes Benz GL350 BLUETEC
2011 Mercedes Benz ML350
2011 Mercedes Benz R350 BLUETEC
2011 Nissan ARMADA 2WD
2011 Nissan ARMADA 4WD
2011 Nissan PATHFINDER 4WD
2011 Nissan TITAN 2WD S
2011 Nissan TITAN 4WD PRO4X
2011 Porsche CAYENNE
2011 Toyota 4RUNNER 2WD LTD
2011 Toyota 4RUNNER 4WD LTD
2011 Toyota LANDCRUISER
2011 Toyota SEQUOIA 2WD LTD
2011 Toyota SEQUOIA 4WD LTD
2011 Toyota TUNDRA 2WD
2011 Toyota TUNDRA 4WD
2011 Volkswagen TOUAREG HYBRID

  • Tammy

    See 2011 list of vehicles.