S.1177 - Volunteer Driver Tax Appreciation Act of 2025 (119th Congress)
Summary
The Volunteer Driver Tax Appreciation Act of 2025, introduced as S. 1177, aims to amend the Internal Revenue Code of 1986. The amendment seeks to equalize the charitable mileage rate with the business travel rate. This adjustment would specifically impact volunteers who use their vehicles to transport people or property on behalf of charitable organizations.
Expected Effects
If enacted, this bill would increase the tax deduction available to volunteer drivers. The change allows them to deduct mileage at the same rate as business travelers. This could incentivize more volunteer work and provide financial relief to those who volunteer.
Potential Benefits
- Increased tax deductions for volunteer drivers, reducing their financial burden.
- Potential increase in volunteerism due to the increased financial incentive.
- Greater support for charitable organizations through increased volunteer driver participation.
- Simplification of the tax code by aligning charitable and business mileage rates.
- Encourages individuals to contribute to their communities through volunteer work.
Potential Disadvantages
- Potential for increased complexity in tax reporting for volunteers.
- Possible revenue loss for the government due to increased tax deductions.
- Risk of misuse or fraudulent mileage claims.
- May disproportionately benefit higher-income volunteers who can afford to volunteer more.
- Could create additional administrative burden for the IRS.
Constitutional Alignment
The bill appears to align with the general welfare clause of the Constitution, as it aims to support charitable activities and incentivize volunteerism, potentially benefiting communities. Article I, Section 8 grants Congress the power to lay and collect taxes, duties, imposts and excises, to pay the debts and provide for the common defense and general welfare of the United States. The bill falls under Congress's power to modify the tax code.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).