Large SUVs get classified for tax purposes as light trucks and thus can be depreciated much faster than most vehicles.
The result? Three-ton behemoths are usually mostly deductible in the first year, while more fuel-efficient cars are limited to only a small portion of the cost. It generally takes about six years to fully recoup the cost of a business-use fuel-efficient.
And now we see the real source of the “demand” for large SUVs: a tax loophole. Quite frankly, that’s insane.
The SUV tax loophole needs to be closed. Now.
