The IRS has finalized regulations expanding the definition of “qualified nonpersonal use vehicles” to include unmarked emergency vehicles used by firefighters, rescue squads and ambulance crews. These vehicles, typically equipped with lights, sirens and emergency gear, are now exempt from the Internal Revenue Code Sec. 274(d) rules that require additional substantiation when claiming certain deductions for business use of a vehicle. This change simplifies recordkeeping and compliance for employers and employees and aligns the tax treatment of these vehicles with other emergency vehicles. The amendments apply to tax years beginning on or after March 20, 2026. Let us know if you have questions.
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