H.R. 1582: Volunteer Driver Tax Appreciation Act of 2025

The bill known as the Volunteer Driver Tax Appreciation Act of 2025 proposes an amendment to the Internal Revenue Code concerning tax deductions for mileage driven for charitable purposes. Here are the key points of the bill:

Overview of the Bill

The primary aim of the bill is to increase the tax deduction rate for charitable mileage. Currently, the Internal Revenue Code allows a deduction of 14 cents per mile for mileage driven in support of charitable organizations. The bill seeks to change this setup by aligning the charitable mileage rate with the standard mileage rate that is used for business travel expenses.

Specific Changes Proposed

• The bill amends section 170 of the Internal Revenue Code by modifying the current deduction for charitable mileage. Instead of being exclusively 14 cents per mile, it introduces a provision to increase this amount.
• Specifically, the bill states that for the transportation of individuals or property on behalf of qualifying charitable organizations, the mileage deduction rate will be determined by the Secretary of the Treasury. This new rate must be equal to or higher than the standard mileage rate used for business travel expenses.

Effective Date

The changes proposed by this bill are intended to take effect for taxable years starting after December 31, 2024.

Impact on Volunteer Drivers

The bill is designed to provide greater financial support to those who volunteer their time and vehicles to help charitable organizations. By allowing a higher tax deduction for volunteer drivers, the bill aims to acknowledge and appreciate the contributions of individuals who assist others through charitable activities.

Relevant Companies

• None found