Federal legislation is critical to provide parity on mileage reimbursement for volunteers. It is imperative that volunteers are reimbursed for their trip costs at a rate that equals the business reimbursement rate. Volunteer drivers contribute their time while providing a valuable service to their communities and fellow citizens.
The 14 cents per mile rate for charitable organizations has remained unchanged since its inception as it is set by statute so requires passage of federal legislation to increase the rate while the IRS has the authority to adjust the business rate and generally does so annually. While fuel costs are a significant factor in the mileage figure, other items enter the calculation of mileage rates, such as depreciation and insurance and other fixed and variable costs.
We Need to Close the Gap
The gap is significant — the volunteer rate is currently a mere 14 cents per mile while the business reimbursement rate is currently 62.5 cents. For the final 6 months of 2022, the standard mileage rate for business travel was increased to 62.5 cents per mile, up 4 cents from the rate effective at the start of the year. *
HR 7432
In April, at the request of the Minnesota Public Transit Association and the Volunteer Driver Coalition, Congressman Pete Stauber (MN-08) introduced the Volunteer Driver Tax Appreciation Act of 2022 (HR 7432) with Congresswoman Angie Craig as co-sponsor. Additional co-sponsors are: Rep. Steil, Bryan (R-WI-1); Rep. Kim, Andy (D-NJ-3); Rep. Larsen, Rick (D-WA-2); Rep. Ross, Deborah K. (D-NC-2)
The bill permanently matches the mileage reimbursement rate for volunteers to the rate provided for business purposes by allowing the IRS authority to set the volunteer driver reimbursement rate. Currently, it takes an act of Congress to change the rate while the IRS has the authority to set the business rate.
HR 8265
This July, in response to the rise in fuel prices and its impact on volunteers, U.S. Representative Angie Craig (D-MN) introduced the Tax Emergency Adjustment for Mileage Volunteers Act (TEAM Volunteers Act) (HR 8265) with Congressman Pete Stauber as co-sponsor. This bill increases the rate of the tax deduction for the charitable use of a passenger automobile to equal the standard business rate (i.e., 58.5 cents per mile in the first half of 2022, then 62.5 cents per mile for the rest of that year) for taxable years beginning after 2021 and before 2024. However, the bill then provides for a permanent rate of just 24 cents per mile rate, adjusted annually for inflation, for taxable years beginning after 2023, so this is short-term assistance.
*June 9, the Internal Revenue Service announced an increase in the rate for the final months of 2022. (“The IRS is adjusting the standard mileage rates to better reflect the recent increase in fuel prices,” said IRS Commissioner Chuck Rettig. “We are aware a number of unusual factors have come into play involving fuel costs, and we are taking this special step to help taxpayers, businesses and others who use this rate.”)
We need your support to help pass federal legislation to create parity in mileage reimbursement rates for volunteers. Learn more about how you can help.