Taxes - Vehicle Donation Program Information

Skip Navigation

Michigan.gov, Official Portal for the State of Michigan


>	Discovery and Tax Enforcement
>	Collections
>	Tax Practitioner
>	Native American
>	Hearings

Preguntas
mas Frecuentes
en Español

close print view

print friendly email this page

Vehicle Donation Program Information

In 2005 through 2011, various tax benefits were offered as part of several vehicle donation programs

Credit is no longer available after December 31, 2011

Useful Information at a Glance

Comparison of Michigan Vehicle Donation Programs

	MI Charitable Organization Vehicle Donation Program (PA301, 302, 312, 313)Beginning January 1, 2005	MI Church or House of Worship Vehicle Donation Program (PA 435) Beginning October 1, 2005
Income Tax Credit for Donor on Michigan Return	Up To $50/$100 Tax Credit For Single/Joint Filers Meeting Criteria	None
Eligible Vehicles	Automobile Inspected By Certified Mechanic	Motor Vehicle (Auto, Motorcycle, Etc.)
Recipient	Certified as Eligible by DHS or a Charitable Organization	Must be Certified as Eligible by Church or House of Worship
Organizations Administering Program	IRC 501(c)(3); AND Registered with Attorney General as a Charitable Organization AND Certified by MI Department of Treasury	Regularly Organized Church or House of Religious Worship as Defined by IRC 501(c)(3)
Use Tax Exemption for Recipient	Yes	Yes
Sales Tax Exemption for Organization's Transferred Vehicle to the Recipient	Yes	Not Applicable

Donors of Automobiles to a Charitable Organization

Beginning January 1, 2005, donors may claim a nonrefundable Michigan tax credit for the donation of an automobile to a charitable organization if the auto is transferred to an individual for employment purposes.

Donors must receive the Donor Tax Credit Certificate for Donated Vehicle form from a certified charitable organization to claim the credit.

A tax credit equal to 50% of the fair market value of the automobile (as determined by the charitable organization or the National Automotive Dealers Association (NADA) guidebook) or up to $50 for a return filed by a single person (up to $100 for joint return), – Whichever is Smaller. 2011 List of Qualified Charitable Organizations .

Donors of Motor Vehicles to Churches or Houses of Religious Worship

A Michigan tax credit is NOT available for donors of motor vehicles to churches or houses of religious worship even if the vehicle is intended for use by a qualified recipient.

Charitable Organizations

Beginning January 1, 2005, charitable organizations may apply to the Michigan Department of Treasury for certification of a program to provide automobiles to qualified recipients for employment purposes.

Certified charitable organizations are exempt from sales tax and the qualified recipients are exempt from use tax upon the transfer of the automobile.

Donors of automobiles to certified charitable organizations may claim a tax of up to $50 against income tax for a return filed by a single filer and up to $100 if married filling jointly.

Churches or Houses of Religious Worship - Certification of Qualified Recipients

Churches and houses of religious worship can certify qualified recipients for donated motor vehicles. Qualified recipients are exempt from the use tax when vehicles are transferred to them.

Churches or houses of religious worship will provide the qualified recipients with a certificate of use tax exemption along with the vehicle transfer documents.

Beginning October 1, 2005, employment and income requirements change. The new standard will require qualified recipient(s) to be below 200% of the federal poverty guidelines .

Recipients of Donated Vehicles Received from a Charitable Organization or the Department of Human Services (DHS)

A qualified person who receives an automobile from the Department of Human Services or a certified charitable organization is exempt from the Use tax. Qualified recipients must satisfy certain employment and income requirements. Visit the Department of Human Services (DHS) website for more information and a list of county DHS offices.

Recipients of Donated Motor Vehicles Received from a Church or House of Religious Worship

A qualified recipient who receives a motor vehicle from a church or house of religious worship is exempt from the Use tax. The requirements for certification change depending on the date you receive the motor vehicle.

Beginning October 1, 2005 employment and income requirements change. The new standard will require qualified recipient(s) to be below 200% of the federal poverty level guidelines .

Other Helpful Information

— Individual Income Tax Information

— Contact Treasury

— View Federal Income Tax Deduction information at www.irs.gov; in the search, enter the key word "car donation".