Bill Would Raise Rate for Car Use by Volunteers

A Wisconsin Congressman has introduced a bill aimed at helping 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 be reimbursed by a charity at the rate of 14 cents a mile without the payment being subject to federal income tax.

Under the bill (HR 590) submitted by Republican Rep. Thomas E. Petri, volunteers could be reimbursed at the standard business mileage rate, which is now 55 cents per mile, without being subject to tax.

The current discrepancy between the charitable and business mileage rates “is discriminatory and unfair,” said Mr. Petri. “It discourages volunteer activity.”

A press release from the Congressman said the bill — called the Charitable Driving Tax Relief Act — would also drop a federal requirement that charities report their reimbursements to the Internal Revenue Service, “removing an administrative and paperwork burden that detracts resources from their larger purpose.”

Co-sponsors of the bill are Reps. John Campbell, a California Republican; Michael Conaway, a Republican from Texas; and Todd Russell Platts, a Pennsylvania Republican.