Bill Would Raise Rate for Volunteers’ Car Use

Congress is considering legislation that would increase the tax deduction for people who use their automobiles as part of their volunteer work for charities.

Under federal law, volunteers who drive their cars for charitable purposes may deduct 14 cents a mile for their car costs (or be reimbursed by a charity at that rate without the payment being subject to federal income tax). Some members of Congress say that rate is too low, particularly as gas prices have reached more than $4 per gallon.

One pending bill would allow the Internal Revenue Service to continually adjust the mileage rate for charitable activities for inflation and other costs without seeking Congressional approval as the tax agency already does for business, medical, and moving expenses.

The current business rate is 58.5 cents per mile; the medical and moving rate is 27 cents.

“We can’t let an out-of-date mileage rate exacerbate the pinch at the pump for volunteers who selflessly provide so many vital goods and services,” said Sen. Benjamin L. Cardin, a Maryland Democrat. Other Senate sponsors of the bill (S 3246) are Barbara A. Mikulski, a Democrat from Maryland; and Olympia Snowe, a Maine Republican.