I 

111TH CONGRESS 

1ST SESSION H. R. 571 

To amend the Internal Revenue Code of 1986 to promote charitable donations 

of qualified vehicles. 

IN THE HOUSE OF REPRESENTATIVES 

JANUARY 15, 2009 

Mr. DELAHUNT 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 promote 

charitable donations of qualified vehicles. 

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

3 SECTION 1. TREATMENT OF QUALIFIED VEHICLE DONA4 TIONS. 

5 (a) IN GENERAL.—Subparagraph (A) of section 

6 170(f)(12) of the Internal Revenue Code of 1986 (relating 

7 to general rule for contributions of used motor vehicles, 

8 boats, and airplanes) is amended to read as follows: 

9 ‘‘(A) IN GENERAL.—In the case of a con10 tribution of a qualified vehicle, paragraph (8) 


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1 shall not apply and no deduction shall be al2 lowed under subsection (a) for such contribu3 tion unless the taxpayer substantiates the con4 tribution by a contemporaneous written ac5 knowledgment of the contribution by the donee 

6 organization that meets the requirements of 

7 subparagraph (B) and includes the acknowledg8 ment with the taxpayer’s return of tax which 

9 includes the deduction.’’. 

10 (b) CONTENT OF ACKNOWLEDGMENT.—Subpara11 graph (B) of section 170(f)(12) of such Code is amended 

12 by striking clauses (iii), (iv), (v), and (vi) and inserting 

13 the following: 

14 ‘‘(iii) In the case of a qualified vehicle 

15 that is not sold by the organization— 

16 ‘‘(I) a certification of the in17 tended use or material improvement 

18 of the vehicle and the intended dura19 tion of such use, and 

20 ‘‘(II) a certification that the vehi21 cle would not be transferred in ex22 change for money, other property, or 

23 services before completion of such use 

24 or improvement. 


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1 ‘‘(iv) In the case of any qualified vehi2 cle the claimed value of which does not ex3 ceed $2,500— 

4 ‘‘(I) the fair market value of the 

5 vehicle as determined in accordance 

6 with regulations prescribed by the 

7 Secretary, 

8 ‘‘(II) a statement that the de9 ductible amount may not exceed the 

10 fair market value of the vehicle, and 

11 ‘‘(III) if the organization sells the 

12 vehicle without any significant inter13 vening use or material improvement a 

14 certification that the vehicle was sold 

15 in an arm’s length transaction be16 tween unrelated parties. 

17 ‘‘(v) In the case of any qualified vehi18 cle the claimed value of which exceeds 

19 $2,500— 

20 ‘‘(I) a qualified appraisal as de21 fined in subparagraph (E) of para22 graph (11) of this section, 

23 ‘‘(II) a statement that the de24 ductible amount may not exceed the 

25 appraised value of the vehicle, and 


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1 ‘‘(III) if the organization sells the 

2 vehicle without any significant inter3 vening use or material improvement a 

4 certification that the vehicle was sold 

5 in an arm’s length transaction be6 tween unrelated parties.’’. 

7 (c) CONTEMPORANEOUS.—Subparagraph (C) of sec8 tion 170(f)(12) of such Code (relating to contempora9 neous) is amended by striking ‘‘days of—’’ and all that 

10 follows and inserting ‘‘days of the contribution of the 

11 qualified vehicle.’’. 

12 (d) REGULATIONS.—Subparagraph (F) of section 

13 170(f)(12) of such Code (relating to regulations) is 

14 amended by striking the last sentence. 

15 (e) CLERICAL AMENDMENT.—Section 170(f)(12) of 

16 such Code, as amended by this section, is amended by 

17 striking ‘‘acknowledgement’’ each place it occurs and in18 serting ‘‘acknowledgment’’. 

19 (f) PENALTY FOR FRAUDULENT ACKNOWLEDG20 MENTS.—Section 6720 of such Code (relating to fraudu21 lent acknowledgment with respect to donations of motor 

22 vehicles, boats, and airplanes) is amended by striking 

23 ‘‘equal to—’’ and all that follows and inserting the fol24 lowing: 

25 ‘‘equal to— 


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1 ‘‘(1) the product of the highest rate of tax spec2 ified in section 1 and the claimed value of the vehi3 cle, or 

4 ‘‘(2) $5,000.’’. 

5 (g) EFFECTIVE DATE.—The amendments made by 

6 this section shall apply to contributions made after the 

7 date of the enactment of this Act. 

Æ 


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