I 
112TH CONGRESS 
1ST SESSION 
H. R. 860 
To amend the Internal Revenue Code of 1986 to promote charitable donations 
of qualified vehicles. 
IN THE HOUSE OF REPRESENTATIVES 
MARCH 1, 2011 
Mr. LARSON of Connecticut (for himself, Mr. REICHERT, and Ms. BERKLEY) 
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. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. TREATMENT OF QUALIFIED VEHICLE DONA-
TIONS. 
(a) IN GENERAL.—Subparagraph (A) of section 
170(f)(12) of the Internal Revenue Code of 1986 (relating 
to general rule for contributions of used motor vehicles, 
boats, and airplanes) is amended to read as follows: 
‘‘(A) IN GENERAL.—In the case of a con-
tribution of a qualified vehicle, paragraph (8) 
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shall not apply and no deduction shall be al-
lowed under subsection (a) for such contribu-
tion unless the taxpayer substantiates the con-
tribution by a contemporaneous written ac-
knowledgment of the contribution by the donee 
organization that meets the requirements of 
subparagraph (B) and includes the acknowledg-
ment with the taxpayer’s return of tax which 
includes the deduction.’’. 
(b) CONTENT
OF
ACKNOWLEDGMENT.—Subpara-
graph (B) of section 170(f)(12) of such Code is amended 
by striking clauses (iii), (iv), (v), and (vi) and inserting 
the following: 
‘‘(iii) In the case of a qualified vehicle 
that is not sold by the organization— 
‘‘(I) a certification of the in-
tended use or material improvement 
of the vehicle and the intended dura-
tion of such use, and 
‘‘(II) a certification that the vehi-
cle would not be transferred in ex-
change for money, other property, or 
services before completion of such use 
or improvement. 
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‘‘(iv) In the case of any qualified vehi-
cle the claimed value of which does not ex-
ceed $2,500— 
‘‘(I) the fair market value of the 
vehicle as determined in accordance 
with regulations prescribed by the 
Secretary, 
‘‘(II) a statement that the de-
ductible amount may not exceed the 
fair market value of the vehicle, and 
‘‘(III) if the organization sells the 
vehicle without any significant inter-
vening use or material improvement a 
certification that the vehicle was sold 
in an arm’s length transaction be-
tween unrelated parties. 
‘‘(v) In the case of any qualified vehi-
cle the claimed value of which exceeds 
$2,500— 
‘‘(I) a qualified appraisal as de-
fined in subparagraph (E) of para-
graph (11) of this section, 
‘‘(II) a statement that the de-
ductible amount may not exceed the 
appraised value of the vehicle, and 
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‘‘(III) if the organization sells the 
vehicle without any significant inter-
vening use or material improvement a 
certification that the vehicle was sold 
in an arm’s length transaction be-
tween unrelated parties.’’. 
(c) CONTEMPORANEOUS.—Subparagraph (C) of sec-
tion 170(f)(12) of such Code (relating to contempora-
neous) is amended by striking ‘‘days of—’’ and all that 
follows and inserting ‘‘days of the contribution of the 
qualified vehicle.’’. 
(d) REGULATIONS.—Subparagraph (F) of section 
170(f)(12) of such Code (relating to regulations) is 
amended by striking the last sentence. 
(e) CLERICAL AMENDMENT.—Section 170(f)(12) of 
such Code, as amended by this section, is amended by 
striking ‘‘acknowledgement’’ each place it occurs and in-
serting ‘‘acknowledgment’’. 
(f) PENALTY
FOR
FRAUDULENT
ACKNOWLEDG-
MENTS.—Section 6720 of such Code (relating to fraudu-
lent acknowledgment with respect to donations of motor 
vehicles, boats, and airplanes) is amended by striking 
‘‘equal to—’’ and all that follows and inserting the fol-
lowing: 
‘‘equal to the greater of— 
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‘‘(1) the product of the highest rate of tax spec-
ified in section 1 and the claimed value of the vehi-
cle, or 
‘‘(2) $5,000.’’. 
(g) EFFECTIVE DATE.—The amendments made by 
this section shall apply to contributions made after the 
date of the enactment of this Act. 
Æ 
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