Electric Light Truck Bonus Depreciation
IRS depreciation rules typically require businesses to deduct the purchase price of long-term assets over time, rather than on the day you purchase the equipment, machine or vehicle; or whatever eligible item you can't use-up quickly.
The idea is, to match the revenues associated with or generated by the asset with the cost of the asset. This matching is to help support the accurate presentation and current position of a business.
Bonus depreciation is a tax incentive that allows a business to immediately deduct a large portion or even all of purchase price of long-term assets. By doing taxable net income is reduced. This incentive has been used for light trucks and has historically driven SUV sales for businesses. This special or bonus treatment can be better used as an incentive for electric light truck innovation and sales.
This proposal phases out old special and bonus depreciation for gasoline-based vehicles and immediately provide 100% depreciation for electric light trucks.
This bill will:
Increase electric light truck sales
Reduce the new sales of gasoline-based light trucks
Phase out old gasoline-based special and bonus depreciation treatment in 2-years