| Useful Information
at a Glance |
|
Comparison
of Michigan Vehicle Donation Programs
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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 |
| SBT Tax Credit for Donor on Michigan Return |
Up To $100 SBT
Credit For Businesses Donating Vehicles |
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 |
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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. 2005
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.
|
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, up to
$100 if married filling jointly and up to $100 against the Single Business
Tax.
Applications for charitable organization certification must be received by June 30th to be
eligible for certification for that calendar year. Applications received after June 30th will be
reviewed for certification for the following calendar year.
Applications can be obtained from :
Technical Services Division
Michigan Department of Treasury
Lansing, MI 48922
517-636-4230
| 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. These requirements are listed on
Form 4288, Tax Exemption Certificate for Donated Motor Vehicle.
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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.
These requirements are listed on Form 4288, Tax
Exemption Certificate for Donated Motor Vehicle.
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Other Helpful Information
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