This bill increases the standard mileage rate for charitable contributions to match the rate used for business expenses.
Pete Stauber
Representative
MN-8
The "Volunteer Driver Tax Appreciation Act of 2025" aims to increase tax benefits for individuals who use their personal vehicles for charitable purposes. Starting after 2024, the bill allows the Secretary to set a higher mileage rate for charitable contributions, matching the standard rate used for business expenses. This adjustment seeks to provide greater financial relief to volunteer drivers by increasing their eligible deductions.
Volunteer Driver Tax Break Kicks In 2025: Mileage Deduction to Match Business Rate
The "Volunteer Driver Tax Appreciation Act of 2025" is pretty much what it sounds like – a tax break for people who use their cars to help out charities. Starting after December 31, 2024, the amount you can deduct per mile for charitable driving will jump up. Instead of the old, fixed rate (which was stuck at a measly 14 cents a mile), it'll now match the standard mileage rate used for business expenses. (SEC. 2)
Revving Up Relief for Volunteer Drivers
Right now, if you drive your car to deliver meals to seniors or transport supplies for a nonprofit, you can only deduct 14 cents per mile on your taxes. This new law changes that. The Secretary will set the new rate, but it must be at least as high as the mileage rate businesses use. This is a big deal because the business rate is usually much higher, reflecting the actual costs of gas, wear and tear, and insurance. For example, say a volunteer drives 100 miles a week for a food bank. The increased rate could translate to a significant increase in their annual deduction, making it less financially painful to volunteer.
More Than Just Miles: Potential Impacts
This change could have a ripple effect. By making it more affordable to volunteer, charities might see an uptick in people willing to pitch in with driving. Think about your local animal shelter, community center, or even groups that help people get to medical appointments. More volunteer drivers could mean expanded services, reaching more people in need. It also simplifies things for volunteers at tax time – no more having to track two different mileage rates. But it could also mean more paperwork, and it's important to keep accurate records to avoid any issues.
Keeping It Real: Challenges and Connections
While this all sounds good, there's always the practical side. There could be a higher chance of folks inflating the miles they claim. The IRS will need to be on top of verifying that the mileage claimed is legit. It ties into existing tax laws about charitable deductions, so it's not creating something entirely new, just adjusting the existing framework (SEC. 2). Ultimately, this bill aims to give back to those who give their time and their vehicles – and it might just make volunteering a little easier on the wallet.