For tax years beginning in 2011, the maximum section 179 expense deduction is $500,000 ($535,000 for qualified enterprise zone property). This limit is reduced by the amount by which the cost of section 179 property placed in service during the tax year exceeds $2 million. See the instructions for Part I for more information.

For tax years beginning after 2011, the definition of section 179 property will no longer include certain qualified real property. See Special rules for qualified section 179 real property for more information.

For tax years beginning after 2011, the increased section 179 expense deduction limit and threshold amount before reduction in limitation will no longer apply.

The higher section 179 expense deduction will not apply to qualified empowerment zone property placed in service after December 31, 2011. See the instructions for line 1 for more information.

The 100% special depreciation allowance will not apply to most property placed in service after December 31, 2011. See the instructions for line 14 (for listed property, see the instructions for line 25) for more information.

Specified GO Zone extension property placed in service after December 31, 2011, will no longer be treated as qualified property for the 50% special depreciation allowance. See the instructions for line 14 for more information.

Qualified motorsports entertainment complex property placed in service after December 31, 2011, will not be treated as 7-year property under MACRS.

Qualified leasehold improvement property, qualified restaurant property, and qualified retail improvement property placed in service after December 31, 2011, will not be treated as 15-year property under MACRS.

The accelerated depreciation of property on an Indian reservation will not apply to property placed in service after December 31, 2011.