Bill Summary
The "Volunteer Driver Tax Appreciation Act of 2025" aims to amend the Internal Revenue Code of 1986 to increase the charitable mileage deduction for volunteer drivers. Currently, the mileage rate for charitable activities is set at 14 cents per mile. This bill proposes to allow for a higher mileage deduction for transporting individuals or property on behalf of qualifying organizations, aligning it with the standard business travel mileage rate established by the IRS. The change will take effect for taxable years starting after December 31, 2024. This legislation is intended to provide greater financial recognition for volunteers who use their vehicles for charitable purposes.
Possible Impacts
Here are three examples of how the proposed "Volunteer Driver Tax Appreciation Act of 2025" could affect people:
1. **Increased Tax Deductions for Volunteers**: The amendment would allow volunteers who drive for charitable organizations to deduct a higher mileage rate on their taxes, aligning it with the business travel rate. This change would encourage more individuals to participate in volunteer driving roles, as they would receive greater financial reimbursement for their expenses. For example, a volunteer driver who logs 1,000 miles in a year could potentially see a significant increase in their tax deduction, making their contribution more financially viable.
2. **Encouragement of Charitable Activities**: By increasing the mileage rate for volunteer driving, the legislation could motivate more people to engage in volunteer work, particularly those who may have hesitated due to the costs associated with transportation. This could lead to an increase in participation in community service and charitable organizations, ultimately benefiting those in need and enhancing the overall impact of volunteer-driven initiatives.
3. **Financial Impact on Charitable Organizations**: Organizations that rely on volunteers for transportation may find it easier to recruit and retain volunteers if they can assure them of a higher mileage reimbursement. This could alleviate some financial burdens on the organizations themselves, as they may be able to attract more volunteers who would otherwise be unwilling to donate their time and resources. Consequently, this could enhance the capacity of these organizations to serve their communities effectively and efficiently.
[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1582 Introduced in House (IH)]
<DOC>
119th CONGRESS
1st Session
H. R. 1582
To amend the Internal Revenue Code of 1986 to equalize the charitable
mileage rate with the business travel rate.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
February 25, 2025
Mr. Stauber (for himself and Ms. Craig) introduced the following bill;
which was referred to the Committee on Ways and Means
_______________________________________________________________________
A BILL
To amend the Internal Revenue Code of 1986 to equalize the charitable
mileage rate with the business travel rate.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Volunteer Driver Tax Appreciation
Act of 2025''.
SEC. 2. INCREASE IN CHARITABLE MILEAGE RATE.
(a) In General.--Subsection (i) of section 170 of the Internal
Revenue Code of 1986 is amended by striking ``shall be 14 cents per
mile'' and inserting ``shall be--
``(1) except as provided in paragraph (2), 14 cents per
mile, and
``(2) in the case of transportation of persons (other than
the taxpayer) or property on behalf of an organization
described in subsection (c), the rate determined by the
Secretary, which rate shall not be less than the standard
mileage rate used for purposes of sections 162 and 212.''.
(b) Effective Date.--The amendment made by this section shall apply
to taxable years beginning after December 31, 2024.
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