Now here's an interesting twist on the fleet building topic: tax breaks for small business owners buying SUVs! According to this AP article on Yahoo! News, small business owners who buy vehicles weighing more than 3 tons (such as a Hummer, Suburban or Excursion) can receive a tax deduction of up to $25,000, depending on their tax bracket. Depreciation can be claimed on the vehicle as well.
Federal tax laws currently allow buyers of hybrids a tax deduction of up to $3,150, regardless of tax bracket. Needless to say, the politicos are trying to even things out, but we'll see how long that takes.
Some of you are probably wondering why, other than the generous tax break, a business owner would purchase a large SUV instead of a small, fuel-efficient hybrid. Personally, I can see where the benefits lie, though. After all, as the real estate agent quoted in the story mentions, the vehicle can be used for transportation to rugged areas, but it also makes a darn handy marketing tool. The Hummer shown in the story is certainly eye-catching.
Does that mean you should invest in one? I'm torn, personally. I drive a full-size truck myself and I'd gladly take that there Hummer, and I can see where the deductions and such would come in handy. However, if you don't have a true need for such a vehicle, it's not worth attacking your bottom line in the short run for the deductions. It's also not worth the potential negative PR if you live/work in an area where your potential customers will be more offended by, rather than impressed by, such a vehicle.
Weigh your options...but it sure is nice to know Uncle Sam is handing out "gifts".
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