Volunteer Mileage Reimbursement Rate

In some volunteer agencies, firefighters and EMS personnel respond to incidents in their personal vehicles and qualify for a federal mileage reimbursement of 14 cents per mile, the charitable deduction rate. This rate was established in 1997 when the average price of gasoline fluctuated between $1.18 and $1.28 per gallon. On September 1, 2008, the average price of gasoline in the United States was $3.68 per gallon, approximately 300 percent higher than in 1997. By contrast, the business mileage reimbursement rate is 50 cents per mile.

 

The NVFC believes that the charitable deduction rate should be increased and a mechanism established for adjusting the rate in the future as the price of gas fluctuates. Senator Benjamin Cardin (D-MD) introduced the Giving Incentives to Volunteers Everywhere (GIVE) Act (S. 243) on January 14, 2009. The legislation would increase the charitable deduction rate for mileage to the same level as business reimbursement and establish that reimbursement of operating expenses from a volunteer organization for expenses related to the use of a passenger vehicle for the benefit of that organization are not considered taxable income. Congressman John Lewis (D-GA) introduced companion legislation (H.R. 524) in the House on the same day that the Senate bill was introduced. The NVFC supports passage of the GIVE Act.