CARS Act of 2015

Summary: Charitable Automobile Red-Tape Simplification Act of 2015 or&nbsp;the CARS Act of 2015&nbsp; This bill amends the Internal Revenue Code, with respect to the tax deduction for charitable contributions, to modify the substantiation rules for donations of qualified vehicles (i.e., motor vehicles manufactured primarily for use on public streets, roads, and highways and boats or airplanes) with a&nbsp;claimed value exceeding $500 but not $2,500,&nbsp;to require: (1)&nbsp;a statement with respect to such qualified vehicles and a good faith estimate of their value at the time of donation; and (2) a contemporaneous written acknowledgement of the contribution by the donee organization, with information about the donor and the qualified vehicle. 

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Charitable Automobile Red-Tape 
Simplification Act of 2015'' or as the ``CARS Act of 2015''.

SEC. 2. MODIFICATION OF SUBSTANTIATION RULES FOR THE DONATION OF 
              CERTAIN VEHICLES.

    (a) In General.--Section 170(f)(12) of the Internal Revenue Code of 
1986 is amended to read as follows:
            ``(12) Contributions of used motor vehicles, boats, and 
        airplanes exceeding $500 but not $2,500.--
                    ``(A) In general.--In the case of a contribution of 
                a qualified vehicle the claimed value of which exceeds 
                $500 but not $2,500, paragraph (8) shall not apply and 
                no deduction shall be allowed under subsection (a) for 
                such contribution unless the taxpayer attaches to the 
                return for the taxable year--
                            ``(i) a statement that includes--
                                    ``(I) the make, model, year of 
                                manufacture, and condition of the 
                                qualified vehicle at time of donation, 
                                and
                                    ``(II) a good faith estimate of the 
                                value of the qualified vehicle at time 
                                of donation based on a widely available 
                                used vehicle pricing guide (as 
                                determined by the Secretary) which 
                                takes into account unusual equipment, 
                                unusual mileage, and physical condition 
                                of the vehicle, and
                            ``(ii) a contemporaneous written 
                        acknowledgment of the contribution by the donee 
                        organization which includes the following 
                        information:
                                    ``(I) The name and taxpayer 
                                identification number of the donor.
                                    ``(II) The vehicle identification 
                                number or similar number.
                                    ``(III) The condition of the 
                                donated vehicle, including any engine 
                                trouble, body damage, high mileage, and 
                                any excessive wear and tear.
                                    ``(IV) Whether the donee 
                                organization provided any goods or 
                                services in consideration, in whole or 
                                in part, for the qualified vehicle.
                                    ``(V) A description and good faith 
                                estimate of the value of any goods or 
                                services referred to in subclause (IV) 
                                or, if such goods or services consist 
                                solely of intangible religious benefits 
                                (as defined in paragraph (8)(B)), a 
                                statement to that effect.
                    ``(B) Estimates to be based on trade-in value.--
                            ``(i) In general.--Any estimate made under 
                        subparagraph (A)(i)(II) based on a used vehicle 
                        pricing guide shall be made on the basis of the 
                        trade-in value of the vehicle or such similar 
                        valuation as the Secretary may specify.
                            ``(ii) Trade-in value.--For purposes of 
                        this subparagraph, the term `trade-in value' 
                        means a valuation based the acquisition of 
                        comparable vehicles by dealers from private 
                        parties.
                    ``(C) Information to secretary.--A donee 
                organization required to provide an acknowledgment 
                under this paragraph shall provide to the Secretary the 
                information contained in the acknowledgment. Such 
                information shall be provided at such time and in such 
                manner as the Secretary may prescribe.
                    ``(D) Qualified vehicle.--For purposes of this 
                paragraph, the term `qualified vehicle' means any--
                            ``(i) motor vehicle manufactured primarily 
                        for use on public streets, roads, and highways,
                            ``(ii) boat, or
                            ``(iii) airplane.
                Such term shall not include any property which is 
                described in section 1221(a)(1).
                    ``(E) Regulations or other guidance.--The Secretary 
                shall prescribe such regulations or other guidance as 
                may be necessary to carry out the purposes of this 
                paragraph.''.
    (b) Coordination With Appraisal Requirements.--
            (1) In general.--Section 170(f)(11)(A)(ii)(I) of such Code 
        is amended--
                    (A) by inserting ``and'' before ``publicly'', and
                    (B) by striking ``and any qualified vehicle 
                described in paragraph (12)(A)(ii) for which an 
                acknowledgment under paragraph (12)(B)(iii) is 
                provided''.
            (2) Coordination of dollar limitations.--Section 
        170(f)(11)(C) of such Code--
                    (A) is amended by inserting ``($2,500 in the case 
                of a qualified vehicle as defined in paragraph (12))'' 
                after ``$5,000'', and
                    (B) by striking ``contributions of more than 
                $5,000'' in the heading thereof and inserting ``certain 
                contributions''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2015.