Under the American Jobs Creation Act of 2004, business owners are no longer permitted to apply the full Section 179 expensing deduction to the purchase of certain types of SUVs. Previously, first year expensing could be used in lieu of the less generous depreciation provisions that apply to most cars used for business purposes. The revised rules call for a deduction of no more than $25,000 for an SUV or truck that weighs between 6,000 lbs. and 14,000 lbs.

The first-year depreciation limits for business vehicles placed in service in 2009 apply to automobiles, trucks, and vans. For passenger cars, the limits are $2,960 for the first tax year ($10,960 for automobiles for which the special depreciation allowance applies), $4,800 for the second, $2,850 for the third, and $1,775 for subsequent years. For trucks and vans, the limits are $3,060 for the first tax year ($11,060 if the special depreciation allowance applies), $4,900 for the second, $2,950 for the third, and $1,775 for subsequent years.