Sponsors (12)
The bill standardizes a low, predictable 14¢ per‑mile deduction for most volunteer driving (with a higher Secretary‑set exception for intensive nonprofit transport), trading a simpler rule and clarity for many taxpayers against reduced tax benefits for most volunteer drivers and some added administrative complexity.
Most volunteer drivers can claim a clear, predictable flat deduction of 14¢ per mile for volunteer driving, making tax treatment simpler and easier to plan for.
Drivers who transport people or property for nonprofits remain eligible for a higher, Secretary‑set rate (which cannot be set below the standard business rate), protecting larger reimbursements for intensive nonprofit transport services.
Most volunteer drivers will see a reduced tax benefit because the 14¢ per mile rate is lower than the current standard business mileage rate, effectively increasing their out‑of‑pocket costs.
The special transportation exception and Secretary‑set rate could create additional administrative and recordkeeping burdens for the Treasury, nonprofits, and taxpayers while the rule is issued and interpreted.
Based on analysis of 2 sections of legislative text.
Lowers the charitable mileage deduction to 14¢/mile for most charitable travel while preserving a Secretary‑set (at least business) rate for transporting people or property.
Sets the federal charitable mileage deduction rate at 14 cents per mile for most vehicle travel used for charitable purposes, effective for tax years beginning after December 31, 2024. It keeps a separate rule for trips that transport people (other than the taxpayer) or property on behalf of tax-exempt organizations: those trips use a rate set by the Treasury Secretary that may be higher but must be at least the standard business mileage rate. The change lowers the per-mile deduction used by many volunteers and donors who itemize charitable deductions, while preserving a higher, Secretary‑determined rate for organizations that transport people or property on others’ behalf.
Introduced February 25, 2025 by Peter Stauber · Last progress February 25, 2025