Increased section 179 deduction dollar limits. The maximum amount you can elect to deduct for most section 179 property you placed in service in 2008 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 the property placed in service during the tax year exceeds $800,000. See Dollar Limits under How Much Can You Deduct in chapter 2. For qualified section 179 Gulf Opportunity Zone (GO Zone) property, the maximum section 179 deduction and the $800,000 threshold may be increased. See Dollar limits under Gulf Opportunity Zone (GO Zone) Property in chapter 2.

Depreciation limits on business vehicles. The total section 179 deduction and depreciation you can deduct for a passenger automobile (that is not a truck or van) you use in your business and first placed in service in 2008 is $2,960, if the special depreciation allowance does not apply. The maximum deduction you can take for a truck or van you use in your business and first placed in service in 2008 is $3,160, if the special depreciation allowance does not apply. See Maximum Depreciation Deduction in chapter 5.

Additional tax relief for businesses affected by Kansas storms and tornadoes. An increased section 179 deduction and a special depreciation allowance are available for qualified Recovery Assistance property. For more information, see Recovery Assistance Property under Dollar Limits in chapter 2, and Qualified Recovery Assistance Property in chapter 3.

Special depreciation allowance for property acquired and placed in service after 2007. A 50% additional first year depreciation deduction is available for qualified property acquired after December 31, 2007, and placed in service before January 1, 2010. See Certain Qualified Property Acquired After December 31, 2007 in chapter 3.

Qualified cellulosic biofuel plant property. A 50% additional first year depreciation deduction is available for qualified cellulosic biofuel plant property placed in service after October 3, 2008, and before January 1, 2013. See Qualified Cellulosic Biofuel Plant Property in chapter 3.

Qualified reuse and recycling property. A 50% additional first year depreciation deduction is available for qualified reuse and recycling property acquired after August 31, 2008. See Qualified Reuse and Recycling Property in chapter 3.

Additional tax relief for businesses affected by federally declared disasters. An increased section 179 deduction and a special depreciation allowance are available for qualified disaster assistance property. See Disaster Assistance Property under Dollar Limits in chapter 2, and Qualified Disaster Assistance Property in chapter 3.

Election to accelerate certain credits in lieu of the special depreciation allowance. Generally, corporations and certain automotive partnerships can elect to accelerate pre-2006 unused research credits or minimum tax credits in lieu of claiming the special depreciation allowance for certain eligible qualified property acquired after March 31, 2008, and placed in service before January 1, 2010. See Election to Accelerate Certain Credits in Lieu of the Special Depreciation Allowance in chapter 3.

Photographs of missing children. The Internal Revenue Service is a proud partner with the National Center for Missing and Exploited Children. Photographs of missing children selected by the Center may appear in this publication on pages that would otherwise be blank. You can help bring these children home by looking at the photographs and calling 1-800-THE-LOST (1-800-843-5678) if you recognize a child.

This publication explains how you can recover the cost of business or income-producing property through deductions for depreciation (for example, the special depreciation allowance and deductions under the Modified Accelerated Cost Recovery System (MACRS)). It also explains how you can elect to take a section 179 deduction, instead of depreciation deductions, for certain property, and the additional rules for listed property.