If you thought you couldn’t get a big tax write-off for donating your vehicle to charity, think again.

Big tax breaks for vehicle donation almost disappeared after the U.S. Treasury Department and the Internal Revenue Service issued new guidelines in 2005 based on passage of the American Jobs Creation Act by Congress in 2004.

The law limited the automotive tax deduction to $500. More could be deducted if the family clunker sold for more at auction, according to the IRS guidelines. In most cases, it was much less than the Blue Book market value.

There is a little-known exemption of which Baltimore area residents can take advantage. Baltimore-based Vehicles for Change Inc. takes donated cars and gets them to needy families.

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“We are the only program that gets the market value,” said Marty Schwartz of Vehicles for Change.

The group sells the vehicle to qualified buyers at a fairly low cost and finances it for them so they can rebuild their credit rating.

The result: 73 percent of Vehicle for Change customers obtained better jobs and promotions after six months of getting their vehicle. And they increased their income by an average of $4,558 after six months, according to a survey by the group.

“The car helped strengthen the family structure,” Schwartz said. “The children can now go to after school activities, sports and recreational programs. And the children can get to doctor’s appointments and day care.”

eeldridge@baltimoreexaminer.com