Does GNMG currently have any tax credits?
Yes. We have state tax credits available through two programs: our new Keys to Success Program which can provide substantial state tax credits, as well as generous federal tax deductions for eligible cars donated to GNMG, and more limited state tax credits for donations to our WV Works and Jobs & Hope Programs. However, donated vehicles through both programs can trigger tax deductions on both federal and state tax returns.
(Note: A tax credit is a dollar for dollar reduction in the taxes you owe. A tax deduction is a reduction in your taxable income, and possibly the tax rate which is used to calculate the amount of taxes owed.)
Donating to the Keys to Success Program
In 2020, the West Virginia Legislature passed a new law making available $300,000 a year in state tax credits to individuals who donate vehicles directly to GNMG for use in this program, and to participating dealers who reduce the prices of cars sold through the program.
These tax credits allow GNMG to help participants purchase a vehicle through a cooperating dealer, or directly from us, at a greatly reduced price. The program also provides very low-rate financing through a cooperating credit union. Participants must meet income guidelines and need the vehicle for transportation to work.
By donating your suitable car to us, you will be eligible to receive $2,000 as a direct credit against income taxes that you owe the state of West Virginia, which will reduce the taxes you owe by $2,000.
Additionally, because we will be selling your car to a “needy individual at significantly below-market price . . . [who is] in need of a means of transportation” you may be able to deduct the full fair market value (the retail price) of the car from your federal taxes. (Please see your tax advisor for details.)
Suppose you donate a 2014 Toyota Camry with 95,000 miles in average condition. Assume the trade-in value of the car if you sold it to a dealer is $6,200, and the retail value (or fair market value) is $10,200.
But if you donate the car to GNMG and we accept the car into our Keys to Success Program, you will receive:
1. A tax credit of $2,000 which will reduce the taxes you owe to the state of WV by $2,000. (Note, the tax credit is non-refundable, which means that if you owe less than $2,000, the value of the tax credit will only be equal to the taxes you actually owe) plus—
2. A tax deduction of $10,200 on your federal taxes which would reduce the income on which you owe taxes, and possibly the rate at which your federal taxes are owed.
Please see your tax advisor for details.
Vehicles Eligible for the Keys to Success Program. We can only accept vehicles with a retail value (or fair market value) of at least $6,000 for this program. Call us today to learn more!
We have a limited number of state tax credits available through the NIPs program, which will apply to donated vehicles that do not qualify for the Keys to Success Program as long as these credits last.
Deductions from federal taxes are always available for vehicle donations, and deductions from state taxes are always available if the state tax credits have been depleted.
Vehicles Eligible for the WV Works and Jobs and Hope Programs. We accept most vehicles of any type or value for donations into these programs.
GNMG will provide you with the required information about the value of the vehicle you have donated to be used for state and federal tax purposes.
This information is provided to assist you in making the preliminary decision of whether to donate your vehicle to GNMG. To determine the full impact of the donation, you should consult an accountant or other tax professional.