For tax years beginning in 2009, the maximum section 179 expense deduction is $250,000 ($285,000 for qualified enterprise zone and renewal community property). This limit is reduced by the amount by which the cost of section 179 property placed in service during the tax year exceeds $800,000. See the instructions for Part I.

The higher maximum section 179 expense deduction will not apply to (a) qualified empowerment zone property placed in service after December 31, 2009, (b) qualified renewal property purchased after December 31, 2009, and (c) qualified disaster assistance property placed in service in federally declared disaster areas where the disaster occurred after December 31, 2009. See the instructions for line 1.

Qualified New York Liberty Zone property, qualified Recovery Assistance property, certain qualified property (as defined in section 168(k)(2)(A)) placed in service after December 31, 2009, and qualified disaster assistance property placed in service in federally declared disaster areas where the disaster occurred after December 31, 2009, will not be treated as qualified property for purposes of the special depreciation allowance. See the instructions for lines 14 and 25 for more information.

A corporation that did not make a section 168(k)(4) election for its first tax year ending after March 31, 2008, may elect to claim pre-2006 unused research and minimum tax credits in lieu of claiming the special depreciation allowance under section 168(k) for extension property placed in service generally before January 1, 2010. In addition, corporations that made the section 168(k)(4) election can elect not to apply section 168(k)(4) to extension property. For more information, see the instructions for line 14.

Certain machinery or equipment used in a farming business and placed in service after December 31, 2009, will no longer be treated as 5-year property under MACRS. See the instructions for line 19, column (a).

Qualified motorsports entertainment complex property placed in service after December 31, 2009, will not be treated as 7-year property under MACRS. See the instructions for line 19, column (a).

Qualified leasehold improvement property, certain qualified restaurant property, and certain qualified retail improvement property placed in service after December 31, 2009, will not be treated as 15-year property under MACRS. See the instructions for line 19, column (a).

The accelerated depreciation of property on an Indian reservation will not apply to property placed in service after December 31, 2009. See the instructions for line 19, column (d).

The qualified revitalization expenditures deduction cannot be taken on any building placed in service after December 31, 2009. See instructions for line 42.