S 110
112th CONGRESS
1st Session
S. 110
To amend the Internal Revenue Code of 1986 to promote charitable
donations of qualified vehicles.
IN THE SENATE OF THE UNITED STATES
January 25 (legislative day, January 5), 2011
Mr. ENSIGN introduced the following bill; which was read twice and
referred to the Committee on Finance
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 the greater of--
`(1) the product of the highest rate of tax specified in section 1
and the claimed value of the vehicle, or
(g) Effective Date- The amendments made by this section shall apply
to contributions made after the date of the enactment of this Act.
END
