Congressman John Lewis, D-Ga. has introduced H.R. 6854 that would allow the Secretary of the Treasury to establish the standard mileage rate for use of a passenger automobile for purposes of the charitable contributions deduction and to exclude charitable mileage reimbursements from gross income.

For prior coverage, see Update on Charitable Mileage Bills.

Full Text:

H.R. 6854; Fair Deal for Volunteers Act of 2008

September 10, 2008

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

This Act may be cited as the "Fair Deal for Volunteers Act of 2008".

SEC. 2. DETERMINATION OF STANDARD MILEAGE RATE FOR CHARITABLE CONTRIBUTIONS DEDUCTION.

(a) IN GENERAL. -- Subsection (i) of section 170 of the Internal Revenue Code of 1986 (relating to standard mileage rate for use of passenger automobile) is amended to read as follows:

"(i) STANDARD MILEAGE RATE FOR USE OF PASSENGER AUTOMOBILE. -- For purposes of computing the deduction under this section for use of a passenger automobile, the standard mileage rate shall be the rate determined by the Secretary, which rate shall not be less than the standard mileage rate used for purposes of section 213.".

(b) EFFECTIVE DATE. -- The amendment made by this section shall apply to miles traveled after the date of the enactment of this Act.

SEC. 3. EXCLUSION FROM GROSS INCOME FOR CHARITABLE MILEAGE REIMBURSEMENTS.

(a) IN GENERAL. -- Part III of subchapter B of chapter 1 of the Internal Revenue Code of 1986 (relating to items specifically excluded from gross income) is amended by adding at the end the following new section:

"SEC. 139C. CHARITABLE MILEAGE REIMBURSEMENT.

"(a) IN GENERAL. -- In the case of an individual, gross income shall not include amounts received from an organization described in section 170(c)(2) as reimbursement of operating expenses with respect to the use of a passenger automobile for the benefit of such organization.

"(b) LIMITATION. -- The amount excluded from gross income under subsection (a) shall not exceed the product of the standard mileage rate used for purposes of section 162 multiplied by the number of miles traveled for which such reimbursement is made.

"(c) APPLICATION TO VOLUNTEER SERVICES ONLY. -- Subsection (a) shall not apply with respect to any expenses relating to the performance of services for compensation.

"(d) NO DOUBLE BENEFIT. -- A taxpayer may not claim a deduction or credit under any other provision of this title with respect to reimbursements excluded from income under subsection (a).

"(e) EXEMPTION FROM REPORTING REQUIREMENTS. -- Section 6041 shall not apply with respect to reimbursements excluded from income under subsection (a).

"(f) MAINTENANCE OF RECORDS. -- For purposes of this section, no exclusion shall be allowed under subsection (a) for any reimbursement unless with respect to such reimbursement the taxpayer meets substantiation requirements similar to the requirements of section 274(d).".

(b) CONFORMING AMENDMENT. -- The table of sections for part III of subchapter B of chapter 1 of such Code is amended by adding at the end the following new item:

"Sec. 139C. Charitable mileage reimbursement.".

(c) EFFECTIVE DATE. -- The amendments made by this section shall apply to miles traveled after the date of the enactment of this Act.