Bill Would Raise Rate for Volunteers’ Car Use

Several members of Congress are trying again this year to pass legislation that would increase the tax deduction for people who use their vehicles 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.

Last year, in a bid to help volunteers cope with high gas prices, a dozen bills were introduced in Congress that would have increased the mileage rate in various ways.

None of the measures passed. But today one of the bills was revived in the new session of Congress: the Giving Incentives to Volunteers Everywhere Act, or GIVE Act.

The measure 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 IRS already does for business, medical, and moving expenses. The current business rate is 55 cents per mile; the medical and moving rate is 24 cents.

Under the bill, the IRS could set the rate as high as the business rate but no lower than the deduction set for medical and moving expenses.

Sponsors of the measure said that despite the recent decline in oil prices the cost of a gallon of gas still outpaces the current mileage deduction limit.

“The volunteer spirit of America has always been a source of hope and strength during troubled economic times,” said Sen. Benjamin L. Cardin, a Maryland Democrat who is a sponsor of the legislation. “Our volunteers and charitable organizations need this fix now.”

Other Senate sponsors include John Ensign, a Republican from Nevada; Charles E. Schumer, a New York Democrat; and Olympia Snowe, a Maine Republican. In the House, identical legislation was introduced by several members, including Reps. John Lewis, a Georgia Democrat, and Devin Nunes, a Republican from California.