HB 1582 amends Internal Revenue Code section 170(i) to change how the charitable mileage deduction is calculated. Instead of a single fixed 14 cents-per-mile rate for charitable driving, the bill creates a two-tier rule: most charitable driving remains at 14 cents, but when a taxpayer transports other people or property on behalf of an organization described in section 170(c), the Secretary of the Treasury will set the applicable rate — and that rate cannot be lower than the standard mileage rate used for business and related purposes (sections 162 and 212).
That change effectively raises the per-mile deduction available to volunteer drivers for many nonprofit transportation programs if the IRS’s published standard mileage rate exceeds 14 cents. The bill takes effect for taxable years beginning after December 31, 2024, and shifts discretion to Treasury/IRS to establish the annual charitable transportation rate (subject to the floor).
At a Glance
What It Does
The bill replaces the statutory flat 14 cents-per-mile charitable rate for certain volunteer driving with an IRS-determined rate that must be at least the standard business mileage rate used under sections 162 and 212. It leaves a 14‑cent rate in place for other charitable driving not covered by the new rule.
Who It Affects
Volunteer drivers who transport people or property on behalf of charities (for example, Meals on Wheels drivers, medical transport volunteers, church shuttle drivers), charities that run or depend on volunteer transport programs, and tax professionals who prepare itemized deductions for these taxpayers.
Why It Matters
Aligning charitable transport reimbursement with the business standard mileage rate raises the tax subsidy per mile for volunteer driving, potentially increasing volunteer incentives and nonprofit capacity while expanding a tax expenditure and creating administrative and revenue implications for Treasury and the federal budget.
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What This Bill Actually Does
The bill rewrites the single-sentence charitable mileage rule in section 170(i). Under current law Congress fixed the charitable mileage deduction at 14 cents per mile.
HB 1582 keeps that 14-cent figure for most charitable uses, but inserts an exception: when a taxpayer is transporting other people (not themselves) or property on behalf of an organization described in section 170(c), the IRS will publish the charitable transportation rate and that rate cannot be less than the standard mileage rate the IRS already uses for business and certain income-producing activities.
Practically, the change means the per-mile tax deduction available to many volunteer drivers will rise to whatever the IRS sets as the business standard mileage rate whenever that business rate exceeds 14 cents. The bill does not alter the underlying requirement that taxpayers substantiate charitable mileage (date, miles, purpose, and organization) or the rule that only itemizers can deduct these expenses; it simply changes the cents‑per‑mile multiplier for a defined subset of charitable driving.By delegating the charitable transportation rate to the Secretary and imposing a statutory floor tied to the business rate, the bill gives the IRS flexibility to adjust the charitable rate annually (for example, to reflect fuel and vehicle-cost changes) while ensuring the charitable rate will not lag the business rate.
The amendment applies to tax years beginning after December 31, 2024, so returns for the 2025 tax year and later would reflect the new treatment.
The Five Things You Need to Know
The bill amends Internal Revenue Code section 170(i) by removing the phrase that the charitable mileage rate "shall be 14 cents per mile" and replacing it with a two-part rule.
For transportation of persons (other than the taxpayer) or property on behalf of organizations described in section 170(c), the charitable rate is set by the Secretary and must be at least the standard mileage rate used under sections 162 and 212.
All other charitable mileage remains subject to a 14 cents-per-mile rate under the statute — the bill creates a targeted exception rather than eliminating the flat rate entirely.
The Secretary’s authority means the charitable transportation rate can be updated administratively (likely annually), tying it to the IRS’s existing process for publishing the standard business mileage rate.
The amendment takes effect for taxable years beginning after December 31, 2024, so it governs deductions claimed on returns for 2025 and later tax years.
Section-by-Section Breakdown
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Short title: Volunteer Driver Tax Appreciation Act of 2025
This is a formal naming provision that does not change substantive tax rules but signals the bill’s policy intent: to increase recognition (via tax deduction parity) of volunteer drivers who transport people or property for charities. Practically, the short title matters for citations and for advocates and agencies referencing the law in guidance or outreach materials.
Amendment to IRC §170(i) — two-tier charitable mileage scheme
This is the operative change: the bill strikes the single statutory 14-cent figure and inserts two paragraphs. Paragraph (1) preserves a 14-cent-per-mile statutory rate for charitable uses not covered by paragraph (2). Paragraph (2) creates an exception for transportation of others or property on behalf of organizations described in 170(c), directing the Secretary to determine that specific charitable transportation rate and imposing a floor that it cannot be less than the standard mileage rate used for sections 162 (business) and 212 (expenses for production of income). The mechanics: Congress keeps the formulaic structure but transfers yearly rate-setting latitude to Treasury while mandating a minimum linkage to the business rate.
Effective date
The amendment applies to taxable years beginning after December 31, 2024. That placement makes the change prospective and clarifies the first returns affected. Taxpayers and preparers must apply the new two-tier rule to mileage claimed in 2025 and future years; preparers will need to consult IRS rate notices to determine the applicable charitable transportation rate each year.
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Explore Finance in Codify Search →Who Benefits and Who Bears the Cost
Every bill creates winners and losers. Here's who stands to gain and who bears the cost.
Who Benefits
- Volunteer drivers who transport other people or property for charities — they will likely receive a higher per‑mile tax deduction when the IRS’s business standard mileage rate exceeds 14 cents, increasing the tax value of their out‑of‑pocket driving expenses.
- Nonprofit organizations that run volunteer transportation programs (e.g., senior meal deliveries, medical transport) — higher volunteer deductions can reduce volunteer churn and help recruitment, effectively lowering the implicit cost of operating transport services.
- Recipients of nonprofit transportation services — by strengthening the volunteer incentive, the change could improve availability of rides for seniors, patients, and low‑income individuals who depend on charitable transport.
- Tax advisors and preparers who serve itemizers claiming charitable deductions — the new IRS‑set rate creates an annual advisory point and may increase demand for professional help to apply and substantiate the deduction correctly.
Who Bears the Cost
- The federal Treasury — higher per‑mile deductions will increase the charitable deduction tax expenditure to the extent volunteers claim the larger rate, reducing federal receipts absent offsets.
- Itemizing taxpayers with no volunteer mileage — public subsidy for volunteer driving accrues primarily to those who both volunteer and itemize, creating distributional effects that do not benefit non‑itemizers.
- The IRS/Treasury — the agency must publish and possibly defend an annually adjusted charitable transportation rate and may face additional compliance, guidance, and audit workload related to claims under the new rule.
- Nonprofits that currently reimburse volunteers — charities that provide reimbursement need to coordinate to avoid double benefit (reimbursement reduces deductible expense), and smaller charities may have to update volunteer guidance and recordkeeping procedures.
Key Issues
The Core Tension
The bill’s central dilemma is straightforward: raise the tax incentive for volunteer drivers to expand nonprofit transport capacity, or limit tax expenditures that predominantly benefit itemizers and increase federal revenue costs. The mechanism chosen — an IRS‑set rate floored at the business standard — increases flexibility and responsiveness to costs but also shifts budgetary and equity questions from Congress to Treasury and makes the subsidy both larger and less predictable.
Two practical trade-offs dominate implementation. First, the benefit primarily helps volunteers who itemize their deductions; most lower‑income volunteers who take the standard deduction will not see a direct tax benefit.
That mismatch raises an equity question: the policy encourages volunteer driving but does so through a mechanism that disproportionately aids higher‑income itemizers. Second, giving the Secretary discretion to set the charitable transportation rate introduces administrative flexibility but also unpredictability.
Tying the floor to the business standard mileage rate prevents the charitable rate from trailing the business rate, but it leaves open how frequently and by what procedure Treasury will publish and justify adjustments. This creates potential timing and compliance friction for preparers and taxpayers during transition years.
There are additional second‑order complications. The statute targets transportation of "persons (other than the taxpayer) or property" on behalf of section 170(c) organizations, which raises questions about borderline activities (e.g., transporting a family member of a client, rides for outreach events, or mixed-purpose trips).
The bill does not change substantiation requirements or the rule that reimbursement from the charity generally offsets the deductible expense, so charities and volunteers must carefully coordinate to avoid inadvertent duplication of benefit. Finally, the revenue effect is uncertain without scoring; a materially higher charitable rate could widen the tax expenditure significantly, which matters for budget tradeoffs and for policymakers deciding whether to pair the change with offsets.
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