Summary

S. 110-3246 ("Bill"), introduced by Sen. Benjamin L. Cardin (D-MD), would allow the Treasury to set the deductible mileage rate for use of a passenger automobile for charitable purposes.

The Bill was co-sponsored by Sens. Olympia Snowe (R-ME) and Barbara A. Mikulski (D-MD) and assigned to the Finance Committee.

Extended Summary

Section 170(i) presently sets the deductible mileage rate at 14 cents per mile. Deductible mileage rates for medical and moving purposes are set by the Treasury under authority of Sections 213 and 217. Those rates were recently increased from 19 to 27 cents per mile.

The optional rate for business use, which applies both to deductions and reimbursements, is set by the Treasury under authority of Section 162. Those rates were recently increased from 50.5 to 58.5 cents per mile.

A similar bill was introduced in the House two weeks ago. H.R. 110-6368 would link the charitable mileage rate to the medical and moving expense rates, and would increase all three rates at least 33.7% over the rates in effect on January 1, 2008.

See our commentary on that bill.

Relevant Documents

	a-08-63	7/15/08
	S. 110-3246 (is)	7/10/08
	Legislative CPC Commentary: H.R. 110-6368 Would Increase Mileage Rates	6/30/08
	H.R. 110-6368 (ih)	6/27/08
	IRS News Release: IR-2008-082	6/23/08
	Section 217: Moving expenses	3/24/10
	Section 213: Medical, dental, etc., expenses	3/24/10
	Section 170: Charitable, etc., contributions and gifts	3/24/10
	Section 162: Trade or business expenses	3/24/10