Internal Revenue Bulletin:  2003-45 

November 10, 2003 

Rev. Proc. 2003-75


SECTION 1. PURPOSE

01. This revenue procedure provides: (1) limitations on depreciation deductions for owners of passenger automobiles first placed in service by the taxpayer during calendar year 2003, including special tables of limitations on depreciation deductions for trucks and vans, and for passenger automobiles designed to be propelled primarily by electricity and built by an original equipment manufacturer (electric automobiles); (2) the amounts to be included in income by lessees of passenger automobiles first leased by the taxpayer during calendar year 2003, including a separate table of inclusion amounts for lessees of trucks and vans, and a separate table for lessees of electric automobiles; and (3) the maximum allowable value of employer-provided passenger automobiles first made available to employees for personal use in calendar year 2003 for which the vehicle cents-per-mile valuation rule provided under § 1.61-21(e) of the Income Tax Regulations may be applicable.

02. This revenue procedure also provides: (1) tables of dollar limitations on depreciation deductions for owners of passenger automobiles to which the additional 30 percent first-year allowance for depreciation available under § 168(k)(1)(A) applies, including special tables of limitations on depreciation deductions for qualifying trucks and vans and for qualifying electric automobiles; (2) tables of dollar limitations on depreciation deductions for owners of passenger automobiles to which the additional 50 percent first-year allowance for depreciation available under § 168(k)(4) applies, including special tables of limitations on depreciation deductions for qualifying trucks and vans and for qualifying electric automobiles; and (3) revised tables of dollar limitations for passenger automobiles and electric automobiles that were placed in service by the taxpayer during 2001 and 2002 and to which the additional 30 percent first-year allowance for depreciation available under §  168(k)(1)(A) applies. For purposes of these tables, the additional 30 percent or 50 percent first-year allowance does not apply if the taxpayer has elected under §  168(k)(2)(C)(iii) not to take the additional allowance. Similarly, the additional 50 percent first-year allowance does not apply if the taxpayer has elected under §  168(k)(4)(E) to take the additional 30 percent allowance instead of the additional 50 percent allowance.

03. The tables detailing these depreciation limitations and lessee inclusion amounts reflect the automobile price inflation adjustments required by § 280F(d)(7). The maximum allowable passenger automobile value for applying the vehicle cents-per-mile valuation rule reflects the automobile price inflation adjustment of § 280F(d)(7) of the Internal Revenue Code, as required by § 1.61-21(e)(1)(iii)(A).

SECTION 2. BACKGROUND

01. For owners of passenger automobiles, § 280F(a) imposes dollar limitations on the depreciation deduction for the year that the passenger automobile is placed in service by the taxpayer and each succeeding year. In the case of electric automobiles placed in service after  August 5, 1997, and before January 1, 2005, § 280F(a)(1)(C) requires tripling of these limitation amounts. Section 280F(d)(7) requires the amounts allowable as depreciation deductions to be increased by a price inflation adjustment amount for passenger automobiles placed in service after 1988. The method of calculating this price inflation amount for trucks and vans placed in service in or after calendar year 2003 uses a different CPI “automobile component” (the “new trucks” component) than that used in the price inflation amount calculation for other passenger automobiles (the “new cars” component), resulting in somewhat higher depreciation deductions for trucks and vans. This change reflects the higher rate of price inflation that trucks and vans have been subject to since 1988. For purposes of this revenue procedure, the term “trucks and vans” refers to passenger automobiles that are built on a truck chassis, including minivans and sport utility vehicles (SUVs) that are built on a truck chassis.

02. Section 101 of the Job Creation and Worker Assistance Act of 2002, Pub. L. No. 107-147, 116 Stat. 21 (March 9, 2002) added § 168(k) to the Code. Generally, § 168(k)(1)(A) provides an additional 30 percent first-year depreciation deduction for new property acquired by the taxpayer after September 10, 2001, and before September 11, 2004 (subsequently extended to January 1, 2005), so long as no written binding contract for the acquisition of the property existed prior to September 11, 2001. In the case of a passenger automobile to which the 30 percent additional allowance applies (other than a § 168(k)(4) passenger automobile described in section 2.03 of this revenue procedure, or a passenger automobile for which a taxpayer has made an election under § 168(k)(2)(C)(iii)), § 168(k)(2)(E) increases the first-year depreciation allowed under § 280F(a)(1)(A) by $4,600. For purposes of this revenue procedure, a passenger automobile to which the additional 30 percent first-year allowance under § 168(k)(1)(A) applies (other than a § 168(k)(4) passenger automobile described in section 2.03 of this revenue procedure, or a passenger automobile for which a taxpayer has made an election under § 168(k)(2)(C)(iii)) is referred to as a “§ 168(k)(1) passenger automobile”.

03. Section 201 of the Jobs and Growth Tax Relief Reconciliation Act of 2003, Pub. L. No. 108-27, 117 Stat. 752 (May 28, 2003) added § 168(k)(4) to the Code. Section 168(k)(4)(A)(i) provides that § 168(k)(1) is applied by substituting “50 percent” for “30 percent” for new property acquired by the taxpayer after May 5, 2003, and before January 1, 2005, so long as no written binding contract for the acquisition of the property existed prior to May 6, 2003. In the case of a passenger automobile to which the 50 percent additional allowance applies (or would apply but for an election under § 168(k)(4)(E)) and for which no election has been made under § 168(k)(2)(C)(iii), § 168(k)(4)(D) increases the first-year depreciation allowed under § 280F(a)(1)(A) by $7,650. For purposes of this revenue procedure, a passenger automobile to which the additional 50 percent first-year allowance under § 168(k)(4) applies (or would apply but for an election under § 168(k)(4)(E)) and for which no election has been made under § 168(k)(2)(C)(iii) is referred to as a “§ 168(k)(4) passenger automobile”.

04. For leased passenger automobiles, § 280F(c) requires a reduction in the deduction allowed to the lessee of the passenger automobile. The reduction must be substantially equivalent to the limitations on the depreciation deductions imposed on owners of passenger automobiles. Under § 1.280F-7(a), this reduction requires the lessees to include in gross income an inclusion amount determined by applying a formula to the amount obtained from a table. There is a table for lessees of electric automobiles, a table for lessees of trucks and vans, and a table for all other passenger automobiles. Each table shows inclusion amounts for a range of fair market values for each tax year after the passenger automobile is first leased. These tables should also be used by lessees of § 168(k)(1) passenger automobiles and § 168(k)(4) passenger automobiles.

05. For passenger automobiles (including trucks, vans, and electric automobiles) first provided by employers to employees that meet the requirements of § 1.61-21(e)(1), the value to the employee of the use of the passenger automobile may be determined under the vehicle cents-per-mile valuation rule of § 1.61-21(e). Section 1.61-21(e)(1)(iii)(A) provides that for a passenger automobile first made available after 1988 to any employee of the employer for personal use, the value of the use of the passenger automobile may not be determined under the vehicle cents-per-mile valuation rule for a calendar year if the fair market value of the passenger automobile (determined pursuant to § 1.61-21(d)(5)(i) through (iv)) on the first date the passenger automobile is made available to the employee exceeds $12,800 as adjusted by § 280F(d)(7).

SECTION 3. SCOPE AND OBJECTIVE

01. The limitations on depreciation deductions in section 4.02(2) of this revenue procedure apply to passenger automobiles (other than leased passenger automobiles) that are placed in service by the taxpayer in calendar year 2003, and continue to apply for each tax year that the passenger automobile remains in service.

02. The tables in section 4.03 of this revenue procedure apply to leased passenger automobiles for which the lease term begins during calendar year 2003. Lessees of such passenger automobiles must use these tables to determine the inclusion amount for each tax year during which the passenger automobile is leased. See Rev. Proc. 2002-14, 2002-1 C.B. 450, for passenger automobiles first leased before January 1, 2003.

03. The maximum fair market value figure in section 4.04(2) of this revenue procedure applies to employer-provided passenger automobiles first made available to any employee for personal use in calendar year 2003. See Rev. Proc. 2002-14 for the maximum fair market value figure for passenger automobiles first made available before January 1, 2003.

04. The revised limitations on depreciation deductions in section 4.05(2) of this revenue procedure apply to § 168(k)(1) passenger automobiles placed in service by the taxpayer during 2001 and 2002. The tables in section 4.05(2) of this revenue procedure amplify both Rev. Proc. 2001-19, 2001-1 C.B. 732, and Rev. Proc. 2002-14 by providing tables for § 168(k)(1) passenger automobiles to which those revenue procedures apply.

SECTION 4. APPLICATION

01. In General.

(1) Limitations on Depreciation Deductions for Certain Automobiles. The limitations on depreciation deductions for passenger automobiles placed in service by the taxpayer for the first time during calendar year 2003 are found in Tables 1 through 9 in section 4.02(2) of this revenue procedure. Table 1 of this revenue procedure provides limitations on depreciation deductions for a passenger automobile (other than a truck, van, electric automobile, § 168(k)(1) passenger automobile, or § 168(k)(4) passenger automobile). Table 2 of this revenue procedure provides limitations on depreciation deductions for a § 168(k)(1) passenger automobile (other than a truck, van, or electric automobile). Table 3 of this revenue procedure provides limitations on depreciation deductions for a § 168(k)(4) passenger automobile (other than a truck, van, or electric automobile). Table 4 of this revenue procedure provides limitations on depreciation deductions for a truck or van (other than a § 168(k)(1) passenger automobile or § 168(k)(4) passenger automobile). Table 5 of this revenue procedure provides limitations on depreciation deductions for a truck or van that is a § 168(k)(1) passenger automobile. Table 6 of this revenue procedure provides limitations on depreciation deductions for a truck or van that is a § 168(k)(4) passenger automobile. Table 7 of this revenue procedure provides limitations on depreciation deductions for an electric automobile (other than a § 168(k)(1) passenger automobile or § 168(k)(4) passenger automobile). Table 8 of this revenue procedure provides limitations on depreciation deductions for an electric automobile that is a § 168(k)(1) passenger automobile. Table 9 of this revenue procedure provides limitations on depreciation deductions for an electric automobile that is a § 168(k)(4) passenger automobile.

(2) Inclusions in Income of Lessees of Passenger Automobiles. A taxpayer first leasing a passenger automobile during calendar year 2003 must determine the inclusion amount that is added to gross income using the tables in section 4.03 of this revenue procedure. The inclusion amount is determined using Table 10 in the case of a passenger automobile (other than a truck, van, or electric automobile), Table 11 in the case of a truck or van, and Table 12 in the case of an electric automobile. In addition, the procedures of § 1.280F-7(a) must be followed.

(3) Maximum Automobile Value for Using the Cents-per-mile Valuation Rule. An employer providing a passenger automobile for the first time in calendar year 2003 for the personal use of any employee may determine the value of the use of the passenger automobile by using the cents-per-mile valuation rule in § 1.61-21(e) if the fair market value of the passenger automobile does not exceed the amount specified in section 4.04(2) of this revenue procedure. If the fair market value of the passenger automobile exceeds the amount specified in section 4.04(2) of this revenue procedure, the employer may determine the value of the use of the passenger automobile under the general valuation rules of § 1.61-21(b) or under the special valuation rules of § 1.61-21(d) (Automobile lease valuation) or § 1.61-21(f) (Commuting valuation) if the applicable requirements are met.

(4) Limitations on Depreciation Deductions for Certain Passenger Automobiles Placed in Service in 2001 or 2002. Depreciation deductions with respect to § 168(k)(1) passenger automobiles placed in service during calendar year 2001 or 2002 are limited to the amounts set forth in Tables 13 through 16 of section 4.05(2) of this revenue procedure.

02. Limitations on Depreciation Deductions for Certain Automobiles.

(1) Amount of the Inflation Adjustment. Under § 280F(d)(7)(B)(i), the automobile price inflation adjustment for any calendar year is the percentage (if any) by which the CPI automobile component for October of the preceding calendar year exceeds the CPI automobile component for October 1987. The term “CPI automobile component” is defined in § 280F(d)(7)(B)(ii) as the “automobile component” of the Consumer Price Index for all Urban Consumers published by the Department of Labor (the CPI). The new car component of the CPI was 115.2 for October 1987 and 136.7 for October 2002. The October 2002 index exceeded the October 1987 index by 21.5. The Service has, therefore, determined that the automobile price inflation adjustment for 2003 for passenger automobiles (other than trucks and vans) is 18.66 percent (21.5/115.2 x 100%). This adjustment is applicable to all passenger automobiles (other than trucks and vans) that are first placed in service in calendar year 2003. The dollar limitations in § 280F(a) must therefore be multiplied by a factor of 0.1866, and the resulting increases, after rounding to the nearest $100, are added to the 1988 limitations to give the depreciation limitations applicable to passenger automobiles (other than trucks, vans, and electric automobiles) for calendar year 2003. To determine the dollar limitations applicable to an electric automobile first placed in service during calendar year 2003, the dollar limitations in § 280F(a) are tripled in accordance with § 280F(a)(1)(C) and are then multiplied by a factor of 0.1866; the resulting increases, after rounding to the nearest $100, are added to the tripled 1988 limitations to give the depreciation limitations for calendar year 2003. To determine the dollar limitations applicable to trucks and vans first placed in service during calendar year 2003, the new truck component of the CPI is used instead of the new car component. The new truck component of the CPI was 112.4 for October 1987 and 147.5 for October 2002. The October 2002 index exceeded the October 1987 index by 35.1. The Service has, therefore, determined that the automobile price inflation adjustment for 2003 for trucks and vans is 31.23 percent (35.1/112.4 x 100%). This adjustment is applicable to all trucks and vans that are first placed in service in calendar year 2003. The dollar limitations in § 280F(a) must therefore be multiplied by a factor of 0.3123, and the resulting increases, after rounding to the nearest $100, are added to the 1988 limitations to give the depreciation limitations applicable to trucks and vans.

(2) Amount of the Limitation. For passenger automobiles placed in service by the taxpayer in calendar year 2003, Tables 1 through 9 contain the dollar amount of the depreciation limitation for each tax year. Use Table 1 for passenger automobiles (other than trucks, vans, electric automobiles, § 168(k)(1) passenger automobiles, and § 168(k)(4) passenger automobiles) placed in service by the taxpayer in calendar year 2003. Use Table 2 for § 168(k)(1) passenger automobiles (other than trucks, vans, and electric automobiles) placed in service by the taxpayer in calendar year 2003. Use Table 3 for § 168(k)(4) passenger automobiles (other than trucks, vans, and electric automobiles) placed in service by the taxpayer in calendar year 2003. Use Table 4 for trucks and vans (other than § 168(k)(1) passenger automobiles and § 168(k)(4) passenger automobiles) placed in service by the taxpayer in calendar year 2003. Use Table 5 for trucks or vans that are § 168(k)(1) passenger automobiles placed in service by the taxpayer in calendar year 2003. Use Table 6 for trucks or vans that are § 168(k)(4) passenger automobiles placed in service by the taxpayer in calendar year 2003. Use Table 7 for electric automobiles (other than § 168(k)(1) passenger automobiles and § 168(k)(4) passenger automobiles) placed in service by the taxpayer in calendar year 2003. Use Table 8 for electric automobiles that are § 168(k)(1) passenger automobiles placed in service by the taxpayer in calendar year 2003. Use Table 9 for electric automobiles that are § 168(k)(4) passenger automobiles placed in service by the taxpayer in calendar year 2003.

REV. PROC. 2003-75 TABLE 1
DEPRECIATION LIMITATIONS FOR PASSENGER AUTOMOBILES (THAT ARE NOT § 168(k)(1) PASSENGER AUTOMOBILES, § 168(k)(4) PASSENGER AUTOMOBILES, TRUCKS, VANS, OR ELECTRIC AUTOMOBILES) PLACED IN SERVICE BY THE TAXPAYER DURING CALENDAR YEAR 2003
Tax Year Amount
  1st Tax Year $3,060
  2nd Tax Year $4,900
  3rd Tax Year $2,950
  Each Succeeding Year $1,775

REV. PROC. 2003-75 TABLE 2
DEPRECIATION LIMITATIONS FOR § 168(k)(1) PASSENGER AUTOMOBILES (THAT ARE NOT TRUCKS, VANS, OR ELECTRIC AUTOMOBILES) PLACED IN SERVICE BY THE TAXPAYER DURING CALENDAR YEAR 2003
Tax Year Amount
  1st Tax Year $7,660
  2nd Tax Year $4,900
  3rd Tax Year $2,950
  Each Succeeding Year $1,775

REV. PROC. 2003-75 TABLE 3
DEPRECIATION LIMITATIONS FOR § 168(k)(4) PASSENGER AUTOMOBILES (THAT ARE NOT TRUCKS, VANS, OR ELECTRIC AUTOMOBILES) PLACED IN SERVICE BY THE TAXPAYER DURING CALENDAR YEAR 2003
Tax Year Amount
  1st Tax Year $10,710
  2nd Tax Year $4,900
  3rd Tax Year $2,950
  Each Succeeding Year $1,775

REV. PROC. 2003-75 TABLE 4
DEPRECIATION LIMITATIONS FOR TRUCKS AND VANS (THAT ARE NOT § 168(k)(1) PASSENGER AUTOMOBILES OR § 168(k)(4) PASSENGER AUTOMOBILES) PLACED IN SERVICE BY THE TAXPAYER DURING CALENDAR YEAR 2003
Tax Year Amount
  1st Tax Year $3,360
  2nd Tax Year $5,400
  3rd Tax Year $3,250
  Each Succeeding Year $1,975

REV. PROC. 2003-75 TABLE 5
DEPRECIATION LIMITATIONS FOR TRUCKS AND VANS THAT ARE § 168(k)(1) PASSENGER AUTOMOBILES PLACED IN SERVICE BY THE TAXPAYER DURING CALENDAR YEAR 2003
Tax Year Amount
  1st Tax Year $7,960
  2nd Tax Year $5,400
  3rd Tax Year $3,250
  Each Succeeding Year $1,975

REV. PROC. 2003-75 TABLE 6
DEPRECIATION LIMITATIONS FOR TRUCKS AND VANS (THAT ARE § 168(k)(4) PASSENGER AUTOMOBILES PLACED IN SERVICE BY THE TAXPAYER DURING CALENDAR YEAR 2003
Tax Year Amount
  1st Tax Year $11,010
  2nd Tax Year $5,400
  3rd Tax Year $3,250
  Each Succeeding Year $1,975

REV. PROC. 2003-75 TABLE 7
DEPRECIATION LIMITATIONS FOR ELECTRIC AUTOMOBILES (THAT ARE NOT § 168(k)(1) PASSENGER AUTOMOBILES OR § 168(k)(4) PASSENGER AUTOMOBILES) PLACED IN SERVICE BY THE TAXPAYER DURING CALENDAR YEAR 2003
Tax Year Amount
  1st Tax Year $9,080
  2nd Tax Year $14,600
  3rd Tax Year $8,750
  Each Succeeding Year $5,225

REV. PROC. 2003-75 TABLE 8
DEPRECIATION LIMITATIONS FOR ELECTRIC AUTOMOBILES THAT ARE § 168(k) (1) PASSENGER AUTOMOBILES PLACED IN SERVICE BY THE TAXPAYER DURING CALENDAR YEAR 2003
Tax Year Amount
  1st Tax Year $22,880
  2nd Tax Year $14,600
  3rd Tax Year $8,750
  Each Succeeding Year $5,225

REV. PROC. 2003-75 TABLE 9
DEPRECIATION LIMITATIONS FOR ELECTRIC AUTOMOBILES THAT ARE § 168(k)(4) PASSENGER AUTOMOBILES PLACED IN SERVICE BY THE TAXPAYER DURING CALENDAR YEAR 2003
Tax Year Amount
  1st Tax Year $32,030
  2nd Tax Year $14,600
  3rd Tax Year $8,750
  Each Succeeding Year $5,225

03. Inclusions in Income of Lessees of Passenger Automobiles.

The inclusion amounts for passenger automobiles (including § 168(k)(1) passenger automobiles and § 168(k)(4) passenger automobiles) first leased in calendar year 2003 are calculated under the procedures described in § 1.280F-7(a). Lessees of passenger automobiles other than trucks, vans, and electric automobiles should use Table 10 of this revenue procedure in applying these procedures, while lessees of trucks and vans should use Table 11 of this revenue procedure and lessees of electric automobiles should use Table 12 of this revenue procedure.

REV. PROC. 2003-75 TABLE 10
DOLLAR AMOUNTS FOR PASSENGER AUTOMOBILES (THAT ARE NOT TRUCKS, VANS, OR ELECTRIC AUTOMOBILES) WITH A LEASE TERM BEGINNING IN CALENDAR YEAR 2003
Fair Market Value of Passenger Automobile Tax Year During Lease
Over Not Over 1st 2nd 3rd 4th 5th and Later
$18,000 18,500 10 22 33 40 45
18,500 19,000 12 26 39 46 53
19,000 19,500 14 30 44 53 61
19,500 20,000 15 34 50 59 69
20,000 20,500 17 37 56 66 77
20,500 21,000 19 41 61 73 85
21,000 21,500 21 45 66 80 92
21,500 22,000 22 49 72 87 100
22,000 23,000 25 54 81 97 111
23,000 24,000 28 62 92 110 127
24,000 25,000 32 70 103 123 143
25,000 26,000 35 77 115 137 158
26,000 27,000 39 85 125 151 174
27,000 28,000 42 92 137 165 189
28,000 29,000 46 100 148 178 204
29,000 30,000 49 108 159 191 221
30,000 31,000 52 115 171 205 236
31,000 32,000 56 123 182 218 251
32,000 33,000 59 130 194 231 267
33,000 34,000 63 138 204 245 283
34,000 35,000 66 146 215 259 298
35,000 36,000 70 153 227 272 314
36,000 37,000 73 161 238 285 330
37,000 38,000 77 168 249 299 346
38,000 39,000 80 176 260 313 361
39,000 40,000 83 184 272 326 376
40,000 41,000 87 191 283 340 391
41,000 42,000 90 199 294 353 407
42,000 43,000 94 206 306 366 423
43,000 44,000 97 214 317 380 438
44,000 45,000 101 221 328 394 454
45,000 46,000 104 229 339 407 470
46,000 47,000 108 236 351 420 486
47,000 48,000 111 244 362 434 501
48,000 49,000 115 251 374 447 516
49,000 50,000 118 259 385 460 532
50,000 51,000 121 267 396 474 548
51,000 52,000 125 274 407 488 563
52,000 53,000 128 282 418 502 578
53,000 54,000 132 289 430 515 594
54,000 55,000 135 297 441 528 610
55,000 56,000 139 304 452 542 626
56,000 57,000 142 312 463 556 641
57,000 58,000 146 320 474 569 656
58,000 59,000 149 327 486 582 672
59,000 60,000 152 335 497 596 688
60,000 62,000 158 346 514 616 711
62,000 64,000 165 361 537 642 743
64,000 66,000 171 377 559 670 773
66,000 68,000 178 392 581 697 805
68,000 70,000 185 407 604 724 835
70,000 72,000 192 422 626 751 867
72,000 74,000 199 437 649 778 898
74,000 76,000 206 452 672 804 930
76,000 78,000 213 467 694 832 960
78,000 80,000 220 483 716 859 991
80,000 85,000 232 509 756 906 1,046
85,000 90,000 249 547 812 973 1,124
90,000 95,000 266 585 868 1,041 1,202
95,000 100,000 284 623 924 1,108 1,280
100,000 110,000 309 680 1,009 1,209 1,397
110,000 120,000 344 755 1,122 1,344 1,552
120,000 130,000 378 831 1,234 1,479 1,708
130,000 140,000 413 907 1,346 1,614 1,864
140,000 150,000 447 983 1,459 1,749 2,019
150,000 160,000 482 1,059 1,571 1,884 2,175
160,000 170,000 516 1,135 1,683 2,019 2,331
170,000 180,000 551 1,210 1,796 2,154 2,487
180,000 190,000 585 1,286 1,909 2,288 2,643
190,000 200,000 620 1,362 2,021 2,423 2,798
200,000 210,000 654 1,438 2,133 2,559 2,953
210,000 220,000 689 1,513 2,246 2,694 3,109
220,000 230,000 723 1,589 2,359 2,828 3,265
230,000 240,000 758 1,665 2,471 2,963 3,421
240,000 250,000 792 1,741 2,583 3,098 3,577
REV. PROC. 2003-75 TABLE 11
DOLLAR AMOUNTS FOR TRUCKS AND VANS WITH A LEASE TERM BEGINNING IN CALENDAR YEAR 2003
Fair Market Value of Truck or Van Tax Year During Lease
Over Not Over 1st 2nd 3rd 4th 5th and Later
$18,500 19,000 7 14 22 24 29
19,000 19,500 8 18 27 32 36
19,500 20,000 10 22 33 38 44
20,000 20,500 12 26 38 45 52
20,500 21,000 14 29 44 52 60
21,000 21,500 15 34 49 59 67
21,500 22,000 17 37 55 66 75
22,000 23,000 20 43 63 76 86
23,000 24,000 23 51 74 89 102
24,000 25,000 27 58 86 102 118
25,000 26,000 30 66 97 116 133
26,000 27,000 33 73 109 129 149
27,000 28,000 37 81 119 143 165
28,000 29,000 40 89 130 157 180
29,000 30,000 44 96 142 170 196
30,000 31,000 47 104 153 183 212
31,000 32,000 51 111 165 196 227
32,000 33,000 54 119 176 210 242
33,000 34,000 58 126 187 224 258
34,000 35,000 61 134 198 238 273
35,000 36,000 65 141 210 251 289
36,000 37,000 68 149 221 264 305
37,000 38,000 71 157 232 278 320
38,000 39,000 75 164 243 292 336
39,000 40,000 78 172 254 305 352
40,000 41,000 82 179 266 318 367
41,000 42,000 85 187 277 332 383
42,000 43,000 89 194 289 345 398
43,000 44,000 92 202 300 358 414
44,000 45,000 96 209 311 373 429
45,000 46,000 99 217 322 386 445
46,000 47,000 102 225 333 400 460
47,000 48,000 106 232 345 413 476
48,000 49,000 109 240 356 426 492
49,000 50,000 113 247 368 439 507
50,000 51,000 116 255 379 453 523
51,000 52,000 120 263 389 467 538
52,000 53,000 123 270 401 480 554
53,000 54,000 127 278 412 493 570
54,000 55,000 130 285 424 507 585
55,000 56,000 134 293 434 521 601
56,000 57,000 137 301 445 534 617
57,000 58,000 140 308 457 548 632
58,000 59,000 144 316 468 561 647
59,000 60,000 147 323 480 575 663
60,000 62,000 152 335 496 595 687
62,000 64,000 159 350 519 622 717
64,000 66,000 166 365 542 648 749
66,000 68,000 173 380 564 676 780
68,000 70,000 180 395 587 702 811
70,000 72,000 187 410 609 730 842
72,000 74,000 194 426 631 757 873
74,000 76,000 201 441 654 783 905
76,000 78,000 208 456 676 811 935
78,000 80,000 215 471 699 837 967
80,000 85,000 227 497 739 885 1,021
85,000 90,000 244 535 795 952 1,099
90,000 95,000 261 573 851 1,020 1,177
95,000 100,000 278 611 907 1,088 1,254
100,000 110,000 304 668 992 1,188 1,372
110,000 120,000 339 744 1,104 1,323 1,527
120,000 130,000 373 820 1,216 1,458 1,683
130,000 140,000 408 895 1,329 1,593 1,839
140,000 150,000 442 971 1,442 1,728 1,994
150,000 160,000 477 1,047 1,554 1,862 2,151
160,000 170,000 511 1,123 1,666 1,998 2,306
170,000 180,000 546 1,198 1,779 2,133 2,462
180,000 190,000 580 1,274 1,892 2,267 2,618
190,000 200,000 615 1,350 2,004 2,402 2,773
200,000 210,000 649 1,426 2,116 2,537 2,929
210,000 220,000 684 1,502 2,228 2,672 3,085
220,000 230,000 718 1,578 2,341 2,807 3,240
230,000 240,000 753 1,653 2,454 2,942 3,396
240,000 250,000 787 1,729 2,566 3,077 3,552
REV. PROC. 2003-75 TABLE 12
DOLLAR AMOUNTS FOR ELECTRIC AUTOMOBILES WITH A LEASE TERM BEGINNING IN CALENDAR YEAR 2003
Fair Market Value of Electric Automobile Tax Year During Lease
Over Not Over 1st 2nd 3rd 4th 5th and Later
$53,000 54,000 28 60 90 108 124
54,000 55,000 31 68 101 121 140
55,000 56,000 35 76 112 134 156
56,000 57,000 38 83 124 148 171
57,000 58,000 42 91 134 162 187
58,000 59,000 45 98 146 175 203
59,000 60,000 49 106 157 188 218
60,000 62,000 54 117 174 209 241
62,000 64,000 61 132 197 235 273
64,000 66,000 68 147 219 263 304
66,000 68,000 75 163 241 290 334
68,000 70,000 81 178 264 317 366
70,000 72,000 88 193 287 343 397
72,000 74,000 95 208 309 371 428
74,000 76,000 102 223 332 397 460
76,000 78,000 109 239 353 425 491
78,000 80,000 116 254 376 452 521
80,000 85,000 128 280 416 499 576
85,000 90,000 145 318 472 566 655
90,000 95,000 162 356 528 634 732
95,000 100,000 180 394 584 701 810
100,000 110,000 206 451 668 803 926
110,000 120,000 240 527 781 937 1,082
120,000 130,000 275 602 894 1,072 1,238
130,000 140,000 309 678 1,006 1,207 1,394
140,000 150,000 344 754 1,118 1,342 1,550
150,000 160,000 378 830 1,231 1,477 1,705
160,000 170,000 413 905 1,344 1,612 1,861
170,000 180,000 447 981 1,456 1,747 2,017
180,000 190,000 482 1,057 1,568 1,882 2,172
190,000 200,000 516 1,133 1,681 2,016 2,329
200,000 210,000 551 1,208 1,794 2,151 2,484
210,000 220,000 585 1,284 1,906 2,287 2,639
220,000 230,000 620 1,360 2,018 2,421 2,796
230,000 240,000 654 1,436 2,131 2,556 2,951
240,000 250,000 689 1,511 2,244 2,691 3,107

04. Maximum Automobile Value for Using the Cents-per-mile Valuation Rule.

(1) Amount of Adjustment. Under § 1.61-21(e)(1)(iii)(A), the limitation on the fair market value of an employer-provided passenger automobile first made available to any employee for personal use after 1988 is to be adjusted in accordance with § 280F(d)(7). Accordingly, the adjustment for any calendar year is the percentage (if any) by which the CPI automobile component for October of the preceding calendar year exceeds the CPI automobile component for October 1987. See, section 4.02(1) of this revenue procedure. The new car component of the CPI was 115.2 for October 1987 and 136.7 for October 2002. The October 2002 index exceeded the October 1987 index by 21.5. The Service has, therefore, determined that the adjustment for 2003 is 18.66 percent (21.5/115.2 x 100%). This adjustment is applicable to all employer-provided passenger automobiles first made available to any employee for personal use in calendar year 2003. The maximum fair market value specified in § 1.61-21(e)(1)(iii)(A) must therefore be multiplied by a factor of 0.1866, and the resulting increase, after rounding to the nearest $100, is added to $12,800 to give the maximum value for calendar year 2003.

(2) The Maximum Automobile Value. For passenger automobiles first made available in calendar year 2003 to any employee of the employer for personal use, the vehicle cents-per-mile valuation rule may be applicable if the fair market value of the passenger automobile on the date it is first made available does not exceed $15,200.

05. Revised Limitation Amounts for § 168(k)(1) Passenger Automobiles Placed in Service During 2001 and 2002.

(1) Calculation of the Revised Amount. The revised depreciation limits provided in this section for § 168(k)(1) passenger automobiles (other than electric automobiles) were calculated by augmenting the existing limitations on the first year allowance in Rev. Proc. 2001-19 (for passenger automobiles placed in service in calendar year 2001) and in Rev. Proc. 2002-14 (for passenger automobiles placed in service in calendar year 2002) by $4,600. Similarly, the revised depreciation limits provided in this section for electric automobiles that are § 168(k)(1) passenger automobiles were calculated by augmenting the existing limitations on the first year allowance in Rev. Proc. 2001-19 (for electric automobiles placed in service in calendar year 2001) and in Rev. Proc. 2002-14 (for electric automobiles placed in service in calendar year 2002) by $13,800 ($4,600 tripled).

(2) Amount of the Revised Limitation. For § 168(k)(1) passenger automobiles (other than electric automobiles) placed in service by the taxpayer in calendar year 2001, Table 13 of this revenue procedure contains the revised dollar amount of the depreciation limitations for each tax year. For electric automobiles that are § 168(k)(1) passenger automobiles placed in service by the taxpayer in calendar year 2001, Table 14 of this revenue procedure contains these revised amounts. For § 168(k)(1) passenger automobiles (other than electric automobiles) placed in service by the taxpayer in calendar year 2002, Table 15 of this revenue procedure contains the revised dollar amount of the depreciation limitations for each tax year. For electric automobiles that are § 168(k)(1) passenger automobiles placed in service by the taxpayer in calendar year 2002, Table 16 of this revenue procedure contains these revised amounts.

REV. PROC. 2003-75 TABLE 13
DEPRECIATION LIMITATIONS FOR § 168(k)(1) PASSENGER AUTOMOBILES (THAT ARE NOT ELECTRIC AUTOMOBILES) FIRST PLACED IN SERVICE BY THE TAXPAYER IN CALENDAR YEAR 2001
Tax Year Amount
  1st Tax Year $7,660
  2nd Tax Year $4,900
  3rd Tax Year $2,950
  Each Succeeding Year $1,775
REV. PROC. 2003-75 TABLE 14
DEPRECIATION LIMITATIONS FOR ELECTRIC AUTOMOBILES THAT ARE § 168(k)(1) PASSENGER AUTOMOBILES FIRST PLACED IN SERVICE BY THE TAXPAYER IN CALENDAR YEAR 2001
Tax Year Amount
  1st Tax Year $23,080
  2nd Tax Year $14,800
  3rd Tax Year $8,850
  Each Succeeding Year $5,325
REV. PROC. 2003-75 TABLE 15
DEPRECIATION LIMITATIONS FOR § 168(k)(1) PASSENGER AUTOMOBILES (THAT ARE NOT ELECTRIC AUTOMOBILES) FIRST PLACED IN SERVICE BY THE TAXPAYER IN CALENDAR YEAR 2002
Tax Year Amount
  1st Tax Year $7,660
  2nd Tax Year $4,900
  3rd Tax Year $2,950
  Each Succeeding Year $1,775
REV. PROC. 2003-75 TABLE 16
DEPRECIATION LIMITATIONS FOR ELECTRIC AUTOMOBILES THAT ARE § 168(k)(1) PASSENGER AUTOMOBILES FIRST PLACED IN SERVICE BY THE TAXPAYER IN CALENDAR YEAR 2002
Tax Year Amount
  1st Tax Year $22,980
  2nd Tax Year $14,700
  3rd Tax Year $8,750
  Each Succeeding Year $5,325

SECTION 5. EFFECTIVE DATE

This revenue procedure, with the exception of section 4.05, applies to passenger automobiles (other than leased passenger automobiles) that are first placed in service by the taxpayer during calendar year 2003, to leased passenger automobiles that are first leased by the taxpayer during calendar year 2003, and to employer-provided passenger automobiles first made available to employees for personal use in calendar year 2003. Section 4.05 of this revenue procedure applies to § 168(k)(1) passenger automobiles that are placed in service by the taxpayer during calendar year 2001 or 2002.

SECTION 6. EFFECT ON OTHER DOCUMENTS

Rev. Proc. 2001-19 and Rev. Proc. 2002-14 are amplified.

DRAFTING INFORMATION

The principal author of this revenue procedure is Bernard P. Harvey of the Office of the Associate Chief Counsel (Passthroughs and Special Industries). For further information regarding the depreciation limitations and lessee inclusion amounts in this revenue procedure, contact Mr. Harvey at (202) 622-3110; for further information regarding the maximum automobile value for applying the vehicle cents-per-mile valuation rule, contact John B. Richards of the Office of the Associate Chief Counsel (Tax Exempt and Government Entities) at (202) 622-6040 (not toll-free calls).


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