The bill would lower financial burden for volunteer drivers by increasing tax reimbursement rates

WASHINGTON - U.S. Senators Amy Klobuchar (D-MN) and Tina Smith (D-MN) introduced legislation to support volunteer drivers. The Volunteer Driver Tax Parity Act would lower the financial burden that volunteer drivers face by increasing the charitable mileage tax reimbursement rate for drivers from $0.14 to $0.625 per mile for a two-year period. 

“Volunteer drivers are vital to rural communities across our state, helping seniors, people with disabilities, veterans, and others access important necessities such as meals and health care,” said Klobuchar. “By increasing the charitable mileage tax reimbursement rate, this legislation will help alleviate the financial challenges that many volunteer drivers face, ensuring that they can continue to serve their communities.” 

“Minnesota’s seniors, veterans, and people with disabilities all rely on volunteer drivers to provide crucial services such as access to food, medication and transport,” said Smith. “I’m proud to introduce this legislation, which will increase the charitable mileage tax reimbursement rate and lower the financial burden for these volunteers. By more fairly compensating them for their services, we can help ensure volunteers are able to continue helping the people who rely on them.”

The Volunteer Driver Tax Parity Act would:

  • Increase the charitable mileage reimbursement rate from $0.14 to $0.625 per mile for a two-year period in order to address financial challenges placed on volunteer drivers;
  • Set the permanent rate for volunteer drivers at $0.24 following the two-year period to adjust for inflation;
  • Ensure that the IRS has the ability to adjust charitable mileage reimbursement rate accordingly to inflationary pressures. Currently, the reimbursement rate has remained stagnant at $0.14 per mile since 1997. 

Companion legislation is led in the House of Representatives by Representatives Angie Craig (D-MN) and Pete Stauber (R-MN). 

Klobuchar has long led efforts to support volunteers. In June 2020, she introduced bipartisan legislation with Senator Bill Cassidy (R-LA) to help ensure seniors can continue to safely volunteer during the coronavirus (COVID-19) pandemic. In April 2020, she and Senator Chris Coons (D-DE) led seven colleagues in introducing legislation to expand national service programs and boost compensation for volunteers.