H.R. 3248 – Reading Mode

111th CONGRESS

1st Session

H. R. 3248

IN THE HOUSE OF REPRESENTATIVES

July 17, 2009

Mr. Filner (for himself, Mr. Bilbray, and Mrs. Davis of California) 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 exempt motor vehicle donations to certain charities from the limitations on such donations.

Motor vehicle donations to certain charities exempt from limitations on such donations

(a)

In general

Paragraph (12) of section 170(f) of the Internal Revenue Code of 1986 (relating to contributions of used motor vehicles, boats, and airplanes) is amended by redesignating subparagraph (F) as subparagraph (G) and by inserting after subparagraph (E) the following new subparagraph:

(F)

Exceptions for vehicle donations made to certain charities

Subparagraph (A) shall not apply to contributions of motor vehicles to any organization if—

(i)

employees of the donee organization are solely responsible for, and perform substantially all of the services for, the daily operations of the organization’s vehicle donation program,

(ii)

the donee organization does not regularly use the property or services of any third party in carrying out such program (other than vehicle repair, maintenance, and towing services), and

(iii)

not more than an amount equal to 20 percent of the annual net proceeds from the sale of motor vehicles donated to such organization is paid to third parties for services used by such program.

For purposes of clause (iii), the term net proceeds means gross proceeds reduced by costs allocable to employee services under the program.

(b)

Effective date

The amendment made by this section shall apply to contributions made after the date of the enactment of this Act in taxable years ending after such date.