Amends the Internal Revenue Code with respect to the charitable tax deduction for contributions of qualified vehicles (i.e., highway motor vehicles, boats, or airplanes) to: (1) set forth revised acknowledgment requirements for vehicles valued at $2,500 or less and vehicles valued at more than $2,500; and (2) revise the penalty for submitting a fraudulent acknowledgment.
[Congressional Bills 110th Congress]
[From the U.S. Government Printing Office]
[H.R. 6727 Introduced in House (IH)]
110th CONGRESS
2d Session
H. R. 6727
To amend the Internal Revenue Code of 1986 to promote charitable
donations of qualified vehicles.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
July 31, 2008
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.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. TREATMENT OF QUALIFIED VEHICLE DONATIONS.
(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 contribution of
a qualified vehicle, paragraph (8) shall not apply and
no deduction shall be allowed under subsection (a) for
such contribution unless the taxpayer substantiates the
contribution by a contemporaneous written
acknowledgment of the contribution by the donee
organization that meets the requirements of
subparagraph (B) and includes the acknowledgment with
the taxpayer's return of tax which includes the
deduction.''.
(b) Content of Acknowledgment.--Subparagraph (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
intended use or material improvement of
the vehicle and the intended duration
of such use, and
``(II) a certification that the
vehicle would not be transferred in
exchange for money, other property, or
services before completion of such use
or improvement.
``(iv) In the case of any qualified vehicle
the claimed value of which does not exceed
$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
deductible amount may not exceed the
fair market value of the vehicle, and
``(III) if the organization sells
the vehicle without any significant
intervening use or material improvement
a certification that the vehicle was
sold in an arm's length transaction
between unrelated parties.
``(v) In the case of any qualified vehicle
the claimed value of which exceeds $2,500--
``(I) a qualified appraisal as
defined in subparagraph (E) of
paragraph (11) of this section,
``(II) a statement that the
deductible amount may not exceed the
appraised value of the vehicle, and
``(III) if the organization sells
the vehicle without any significant
intervening use or material improvement
a certification that the vehicle was
sold in an arm's length transaction
between unrelated parties.''.
(c) Contemporaneous.--Subparagraph (C) of section 170(f)(12) of
such Code (relating to contemporaneous) 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 inserting ``acknowledgment''.
(f) Penalty for Fraudulent Acknowledgments.--Section 6720 of such
Code (relating to fraudulent acknowledgment with respect to donations
of motor vehicles, boats, and airplanes) is amended by striking ``equal
to--'' and all that follows and inserting the following:
``equal to--
``(1) the product of the highest rate of tax specified in
section 1 and the claimed value of the vehicle, or
``(2) $5,000.''.
(g) Effective Date.--The amendments made by this section shall
apply to contributions made after December 31, 2007.
<all>
Introduced in House
Introduced in House
Referred to the House Committee on Ways and Means.
Sponsor introductory remarks on measure. (CR E1647-1648)
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