I 

114TH CONGRESS 

1ST SESSION H. R. 3917 

To amend the Internal Revenue Code of 1986 to modify the substantiation 

rules for the donation of vehicles valued between $500 and $2,500. 

IN THE HOUSE OF REPRESENTATIVES 

NOVEMBER 3, 2015 

Mr. YOUNG of Indiana (for himself, Ms. LINDA T. SA ́NCHEZ of California, Mr. 

NUNES, Mr. TIBERI, Mr. REICHERT, Mr. KELLY of Pennsylvania, Mr. 

RENACCI, Mr. PAULSEN, Mr. ROSKAM, Mr. REED, Mr. BOUSTANY, Mrs. 

NOEM, Mrs. BLACK, Mr. KIND, Mr. THOMPSON of California, Mr. LARSON of Connecticut, Mr. NEAL, Mr. RANGEL, Mr. DANNY K. DAVIS of 

Illinois, Mr. PASCRELL, and Mr. BLUMENAUER) introduced the following 

bill; which was referred to the Committee on Ways and Means 

A BILL 

To amend the Internal Revenue Code of 1986 to modify 

the substantiation rules for the donation of vehicles valued between $500 and $2,500. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Charitable Automobile 

5 Red-Tape Simplification Act of 2015’’ or as the ‘‘CARS 

6 Act of 2015’’. 


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1 SEC. 2. MODIFICATION OF SUBSTANTIATION RULES FOR 

2 THE DONATION OF CERTAIN VEHICLES. 

3 (a) IN GENERAL.—Section 170(f)(12) of the Internal 

4 Revenue Code of 1986 is amended to read as follows: 

5 ‘‘(12) CONTRIBUTIONS OF USED MOTOR VEHI6 CLES, BOATS, AND AIRPLANES EXCEEDING $500 BUT

7 NOT $2,500.— 

8 ‘‘(A) IN GENERAL.—In the case of a con9 tribution of a qualified vehicle the claimed value 

10 of which exceeds $500 but not $2,500, para11 graph (8) shall not apply and no deduction 

12 shall be allowed under subsection (a) for such 

13 contribution unless the taxpayer attaches to the 

14 return for the taxable year— 

15 ‘‘(i) a statement that includes— 

16 ‘‘(I) the make, model, year of 

17 manufacture, and condition of the 

18 qualified vehicle at time of donation, 

19 and 

20 ‘‘(II) a good faith estimate of the 

21 value of the qualified vehicle at time 

22 of donation based on a widely avail23 able used vehicle pricing guide (as de24 termined by the Secretary) which 

25 takes into account unusual equipment, 


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1 unusual mileage, and physical condi2 tion of the vehicle, and 

3 ‘‘(ii) a contemporaneous written ac4 knowledgment of the contribution by the 

5 donee organization which includes the fol6 lowing information: 

7 ‘‘(I) The name and taxpayer 

8 identification number of the donor. 

9 ‘‘(II) The vehicle identification 

10 number or similar number. 

11 ‘‘(III) The condition of the do12 nated vehicle, including any engine 

13 trouble, body damage, high mileage, 

14 and any excessive wear and tear. 

15 ‘‘(IV) Whether the donee organi16 zation provided any goods or services 

17 in consideration, in whole or in part, 

18 for the qualified vehicle. 

19 ‘‘(V) A description and good 

20 faith estimate of the value of any 

21 goods or services referred to in sub22 clause (IV) or, if such goods or serv23 ices consist solely of intangible reli24 gious benefits (as defined in paraVerDate Sep 11 2014 04:03 Nov 05, 2015 Jkt 059200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H3917.IH H3917

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1 graph (8)(B)), a statement to that ef2 fect. 

3 ‘‘(B) ESTIMATES TO BE BASED ON TRADE4 IN VALUE.— 

5 ‘‘(i) IN GENERAL.—Any estimate 

6 made under subparagraph (A)(i)(II) based 

7 on a used vehicle pricing guide shall be 

8 made on the basis of the trade-in value of 

9 the vehicle or such similar valuation as the 

10 Secretary may specify. 

11 ‘‘(ii) TRADE-IN VALUE.—For purposes 

12 of this subparagraph, the term ‘trade-in 

13 value’ means a valuation based the acquisi14 tion of comparable vehicles by dealers from 

15 private parties. 

16 ‘‘(C) INFORMATION TO SECRETARY.—A 

17 donee organization required to provide an ac18 knowledgment under this paragraph shall pro19 vide to the Secretary the information contained 

20 in the acknowledgment. Such information shall 

21 be provided at such time and in such manner 

22 as the Secretary may prescribe. 

23 ‘‘(D) QUALIFIED VEHICLE.—For purposes 

24 of this paragraph, the term ‘qualified vehicle’ 

25 means any— 


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1 ‘‘(i) motor vehicle manufactured pri2 marily for use on public streets, roads, and 

3 highways, 

4 ‘‘(ii) boat, or 

5 ‘‘(iii) airplane. 

6 Such term shall not include any property which 

7 is described in section 1221(a)(1). 

8 ‘‘(E) REGULATIONS OR OTHER GUID9 ANCE.—The Secretary shall prescribe such reg10 ulations or other guidance as may be necessary 

11 to carry out the purposes of this paragraph.’’. 

12 (b) COORDINATION WITH APPRAISAL REQUIRE13 MENTS.— 

14 (1) IN GENERAL.—Section 170(f)(11)(A)(ii)(I) 

15 of such Code is amended— 

16 (A) by inserting ‘‘and’’ before ‘‘publicly’’, 

17 and 

18 (B) by striking ‘‘and any qualified vehicle 

19 described in paragraph (12)(A)(ii) for which an 

20 acknowledgment under paragraph (12)(B)(iii) 

21 is provided’’. 

22 (2) COORDINATION OF DOLLAR LIMITATIONS.— 

23 Section 170(f)(11)(C) of such Code— 


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1 (A) is amended by inserting ‘‘($2,500 in 

2 the case of a qualified vehicle as defined in 

3 paragraph (12))’’ after ‘‘$5,000’’, and 

4 (B) by striking ‘‘CONTRIBUTIONS OF MORE

5 THAN $5,000’’ in the heading thereof and in6 serting ‘‘CERTAIN CONTRIBUTIONS’’. 

7 (c) EFFECTIVE DATE.—The amendments made by 

8 this section shall apply to taxable years beginning after 

9 December 31, 2015. 

Æ 


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