For passenger automobiles placed in service in 2026, section 280F caps depreciation at $20,300 in the first year with bonus depreciation ($12,300 without), $19,800 in the second, $11,900 in the third and $7,160 in each year after, under Revenue Procedure 2026-15. Vehicles over 6,000 pounds are outside the caps.
The 2026 limits are set by Revenue Procedure 2026-15.
Section 280F(a) caps the depreciation deduction, including bonus depreciation and section 179, for a passenger automobile placed in service in a year. The Internal Revenue Service adjusts the caps for inflation each year. For vehicles placed in service in 2026 the caps are $20,300 for the first year when bonus depreciation applies ($12,300 when it does not), $19,800 for the second, $11,900 for the third and $7,160 for each year after, until the basis is recovered. The 2025 figures, from Revenue Procedure 2025-16, are $20,200 ($12,200), $19,600, $11,800 and $7,060.
| Placed in service in | Bonus depreciation | Year 1 | Year 2 | Year 3 | Each later year | Authority |
|---|---|---|---|---|---|---|
| 2026 | Applies | $20,300 | $19,800 | $11,900 | $7,160 | Rev. Proc. 2026-15, Table 1 |
| 2026 | Does not apply | $12,300 | $19,800 | $11,900 | $7,160 | Rev. Proc. 2026-15, Table 2 |
| 2025 | Applies | $20,200 | $19,600 | $11,800 | $7,060 | Rev. Proc. 2025-16, Table 1 |
| 2025 | Does not apply | $12,200 | $19,600 | $11,800 | $7,060 | Rev. Proc. 2025-16, Table 2 |
Which vehicles the caps cover.
A passenger automobile for this purpose is a four-wheeled vehicle made primarily for use on public roads with an unloaded gross vehicle weight of 6,000 pounds or less; for trucks and vans the test is gross vehicle weight rating (section 280F(d)(5)). Vehicles above the line are outside section 280F, which is why a heavy pickup can be fully depreciated in year one, subject only to the section 179 sport utility vehicle cap ($32,000 for 2026) if section 179 rather than bonus is used. Ambulances, hearses, taxis and vehicles built so that personal use is unlikely are excluded by regulation.
| Year | Uncapped (100% bonus, then nothing) | Cap | Allowed | Basis remaining |
|---|---|---|---|---|
| 2026 | 60,000.00 | 20,300.00 | 20,300.00 | 39,700.00 |
| 2027 | 0.00 | 19,800.00 | 19,800.00 | 19,900.00 |
| 2028 | 0.00 | 11,900.00 | 11,900.00 | 8,000.00 |
| 2029 | 0.00 | 7,160.00 | 7,160.00 | 840.00 |
| 2030 | 0.00 | 7,160.00 | 840.00 | 0.00 |
| Asset | Description | Class | Location | In service | Cost | NBV, federal | Status |
|---|---|---|---|---|---|---|---|
| 10120 | Nonresidential improvement, Bldg 2 | Buildings and improvements | Plant 1 | 06/2019 | 312,000.00 | 251,662.32 | In service |
| 10412 | Vertical machining center | Machinery and equipment | Plant 1 / Cell 4 | 05/2023 | 148,500.00 | 46,391.40 | In service |
| 10577 | Delivery van, unit 7 | Vehicles | Fleet | 09/2024 | 58,900.00 | 16,963.20 | In service |
| 10603 | Warehouse racking, aisle 3 | Furniture and fixtures | Warehouse | 01/2025 | 24,300.00 | 14,876.46 | In service |
| 10688 | Server cluster | Computer equipment | HQ / IT | 03/2026 | 41,200.00 | 0.00 | In service |
| 10701 | Line 2 conveyor upgrade | CIP | Plant 2 | 86,410.00 | 86,410.00 | In progress | |
| 09877 | Forklift, unit 3 | Machinery and equipment | Warehouse | 04/2018 | 31,750.00 | 0.00 | Fully depreciated |
Listed property brings a second test.
A passenger automobile is listed property. If qualified business use is 50% or less in the year it is placed in service, MACRS under the general depreciation system, bonus depreciation and section 179 are all unavailable and the vehicle is depreciated straight line under the alternative depreciation system; if business use falls to 50% or below in a later year, the excess depreciation taken in earlier years is recaptured as income (section 280F(b)). Business use below 100% scales every cap. For a leased passenger automobile with a fair market value over $62,000 in 2026, a lease inclusion amount from Table 3 of the revenue procedure reduces the lease deduction instead. The section 179 article covers the sport utility vehicle cap and the depreciation engine page the listed-property limits the register applies.
What to record on the asset.
- The gross vehicle weight rating, so the register knows whether the caps apply.
- The placed-in-service year, which fixes the cap table for the vehicle's life.
- Qualified business use percentage for each year, and the date it fell to 50% or below, if it did.
- Whether bonus depreciation applied in year one, which selects the first-year cap.
- For leased vehicles, the fair market value at the start of the lease and the inclusion amount.
In Fixed Asset Desk: passenger automobiles carry the cap table for their placed-in-service year and a business-use percentage per year, with recapture computed when use drops to 50% or below.
Sources: Internal Revenue Code section 280F; Revenue Procedure 2026-15; Revenue Procedure 2025-16; Treasury Regulation 1.280F-6; Publication 946 (2025), chapter 5. Checked 20 September 2026.