Bill Summary
The "Volunteer Driver Tax Appreciation Act of 2025" aims to amend the Internal Revenue Code to increase the charitable mileage deduction rate for volunteer drivers. Currently, the rate is fixed at 14 cents per mile. This legislation proposes that for volunteers transporting individuals or property on behalf of qualifying organizations, the mileage rate will be set by the Secretary of the Treasury, ensuring it is at least equal to the standard business mileage rate. This change is intended to provide greater financial recognition and support for volunteers who contribute their time and resources to charitable activities. The amendments will take effect for tax years starting after December 31, 2024.
Possible Impacts
Here are three examples of how the "Volunteer Driver Tax Appreciation Act of 2025" could affect people:
1. **Increased Tax Deductions for Volunteers**: By equalizing the charitable mileage rate with the business travel rate, volunteers who use their personal vehicles for charitable work could claim a higher tax deduction. This change may incentivize more individuals to participate in volunteer activities, knowing they can receive greater financial relief for their mileage expenses.
2. **Support for Nonprofit Organizations**: Nonprofits that rely on volunteers for transportation of clients or goods could benefit from an increased number of volunteers. As the cost burden of traveling to volunteer opportunities decreases, more people may be encouraged to drive for these organizations, thereby enhancing the services that nonprofits can provide to their communities.
3. **Financial Relief for Low-Income Volunteers**: Many volunteers may be from low-income backgrounds and may not have the financial resources to cover transportation costs. By increasing the mileage rate, this legislation can provide essential financial relief, making it easier for these individuals to contribute their time and resources to charitable causes without facing financial strain.
[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 1177 Introduced in Senate (IS)]
<DOC>
119th CONGRESS
1st Session
S. 1177
To amend the Internal Revenue Code of 1986 to equalize the charitable
mileage rate with the business travel rate.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
March 27, 2025
Ms. Klobuchar (for herself and Mr. Budd) introduced the following bill;
which was read twice and referred to the Committee on Finance
_______________________________________________________________________
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), a rate determined by the Secretary
which 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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