H.R.1582 - Volunteer Driver Tax Appreciation Act of 2025 (119th Congress)
Summary
H.R.1582, the Volunteer Driver Tax Appreciation Act of 2025, aims to amend the Internal Revenue Code of 1986 to equalize the charitable mileage rate with the business travel rate. This bill proposes that the mileage rate for volunteer drivers transporting people or property on behalf of a charitable organization should match the standard business mileage rate. The bill was introduced in the House of Representatives on February 25, 2025, and referred to the Committee on Ways and Means.
Expected Effects
If enacted, this bill would increase the tax deduction available to individuals who volunteer their time and vehicles to transport people or property for charitable organizations. This could incentivize more people to volunteer, potentially increasing the capacity of charitable organizations to provide services. The change would apply to taxable years beginning after December 31, 2024.
Potential Benefits
- Increased Volunteerism: A higher mileage reimbursement rate could encourage more individuals to volunteer their time and vehicles for charitable purposes.
- Enhanced Charitable Services: With more volunteers, charitable organizations may be able to expand their services and reach more people in need.
- Financial Relief for Volunteers: The increased deduction helps offset the costs incurred by volunteers, such as fuel and vehicle maintenance.
- Simplified Tax Calculations: Aligning the charitable mileage rate with the business rate simplifies tax preparation for volunteers.
- Recognition of Volunteer Contributions: The act acknowledges the valuable contributions of volunteers to society.
Most Benefited Areas:
Potential Disadvantages
- Potential Revenue Loss: Increasing the charitable mileage rate could lead to a decrease in federal tax revenue.
- Complexity in Implementation: The Secretary determining the rate could introduce complexity.
- Risk of Abuse: A higher reimbursement rate could create opportunities for fraudulent claims.
- Limited Impact: The actual impact on volunteerism may be small, as other factors also influence volunteering decisions.
- Administrative Burden: The IRS may face increased administrative burden in processing and auditing charitable mileage deductions.
Constitutional Alignment
This bill appears to align with the general welfare clause of the Constitution, as it seeks to support charitable activities and incentivize volunteerism, potentially benefiting communities. Specifically, the Preamble mentions promoting the general welfare. Article I, Section 8 grants Congress the power to lay and collect taxes, duties, imposts and excises, to pay the debts and provide for the common defense and general welfare of the United States. The bill falls under Congress's power to make laws related to taxation and spending for the general welfare.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).