Platts Continues Efforts to Provide Tax Relief for Volunteer Service

In April 2007, U.S. Congressman Todd Platts (PA-19) introduced legislation (H.R. 2020) to increase the rate of tax deductions available to volunteers who use their personal vehicles for charitable work.  Current federal law sets the reimbursement that volunteers driving for charitable purposes may deduct at 14 cents per mile.  Business travel is reimbursed at a variable rate currently set at 58.5 cents per mile.  A similar bill, S. 3421, was introduced in the Senate last week by U.S. Senator Bob Casey (D-PA).

 “The discrepancy between charitable and business mileage is unfair and discourages individuals from volunteering their time to help less fortunate Americans,” said Congressman Platts. “The weakening economy and surge in gas prices has further eroded participation in such volunteer programs at a time when we need to be doing everything we can to encourage volunteer service.”

While the current business mileage rate has been increased twice in the past year by the Internal Revenue Service due to rising gas prices, the charitable mileage rate has gone unchanged for 11 years.  H.R. 2020 would set the deduction for charitable purposes at “the standard mileage rate for business purposes,” thereby simplifying the tax code, providing equity between charities and for-profit companies, and encouraging charitable service in our communities.  H.R. 2020 is currently pending with the House Committee on Ways and Means.  Congressman Platts originally introduced a version of the legislation in 2002.