The Internal Revenue Service has released a letter issued to a member of the United States House of Representatives regarding the deductibility of amounts paid to the State of Minnesota for a special license plate relating to the conservation of natural habitats. The IRS noted in the letter that Minnesota charges an extra $30 over and above the regular license plate fee for such license plates. The $30 is used to buy and manage habitats for public use.

The letter goes on to say that when a taxpayer has the intention of making a gift, purchases an item from a qualified charity, the excess of the payment made over the value received is a charitable contribution.

No Internal Revenue Code is cited however the statutory support for this deduction is found in §170(c)(l).