As If Better World Surcharge Wasn’t Enough, Hummer Owners Also Lose Tax Break  (thanks to www.Dontbefueled.org for the heads up)

Last Fall, Congress finally took action to phase out the tax loophole allowing small business buyers of giant SUVs, such as the Hummer, to deduct upwards of $100,000 of the purchase on their tax return. Previously, business operators could claim for company use models weighing more than 6,000 pounds fully loaded and write off most, if not all, of the costs on their tax returns.  Whereas the tax credit was
supposed to benefit farmers and contractors who actually need the heavy vehicles for work, many other businesses realized they could meet the weight limit with the larger SUVs.  Thus doctors, lawyers, accountants (especially accountants) and others who didn't need any kind of truck -- light or heavy -- exploited the loophole and
will be guzzling much more gas than necessary in their business travel for years to come.

As if it weren’t bad enough to offer an almost irresistible incentive to choose huge, gas-guzzling trucks and SUVs when they weren’t needed, in May 2003, Congress quadrupled the loophole as part of an "economic stimulus" package of tax breaks for business.  SUV sales held steady despite high gas prices.  Car dealers got in on the
game by touting the heaviest models and advertising the tax loophole.

The new law dramatically reduces the deduction to $25,000 for vehicles weighing under 14,000 pounds.  Now professionals will have to go back to the tried and true way of getting a federal government handout:  become a farmer.

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