The proposed and temporary regulations issued generally permit small business taxpayers to elect to deduct up to $100,000 of the cost of qualifying property purchased and placed in service in a taxable year beginning after 2002 and before 2006. Additionally, taxpayers are permitted to make or revoke an election on an amended return for those taxable years without the consent of the IRS commissioner. 

"The ability to expense up to $100,000 of the cost of depreciable property will significantly reduce the record-keeping burden imposed on small business taxpayers," stated Acting Treasury Assistant Secretary for Tax Policy Greg Jenner. "In addition, the regulations greatly simplify the manner in which taxpayers may make or revoke these elections and provide flexibility to small business taxpayers to ensure the election is to their advantage."

The temporary regulations are effective for taxable years beginning after 2002 and before 2006.