Sponsors (11)
The bill simplifies and standardizes mileage deductions for charitable driving and allows Treasury to set a separate rate for charitable transport, but it locks in a lower fixed rate that reduces the tax value of driving donations and risks discouraging volunteer transport while adding administrative steps.
Taxpayers who donate driving for charity will be able to use a simple, fixed 14¢/mile deduction, reducing recordkeeping and simplifying donation calculations for many small volunteer trips.
Nonprofits and other organizations that rely on volunteers driving people or goods may receive fairer or clearer reimbursement rules because Treasury is authorized to set a separate mileage rate (not below the business rate) for charitable transport.
Taxpayers who primarily drive for charity (frequent volunteer drivers) will get a lower tax benefit because the 14¢/mile charitable rate is below the IRS business mileage rate, reducing the tax value of their donations.
Nonprofits and the people they serve could lose volunteer-provided services if the lower deduction reduces incentives to drive for charity, potentially decreasing volunteer availability for transport-dependent programs.
Nonprofits and taxpayers may face administrative delays or uneven application because the bill requires Treasury to set and issue guidance for a separate charitable transport rate, creating transitional administrative burden.
Based on analysis of 2 sections of legislative text.
Sets charitable mileage at 14¢/mile but allows Treasury to set a separate, no-less-than-business rate for transporting people or property for charities.
Introduced February 25, 2025 by Peter Stauber · Last progress February 25, 2025
Sets a fixed charitable mileage deduction of 14 cents per mile for most volunteer driving but creates a special, separate mileage rate for volunteers who transport people or property on behalf of charities. The Treasury Secretary will set that separate rate, which may be higher and must be at least the standard business mileage rate; the change applies to tax years starting after December 31, 2024.