Congress raises tax break for nonprofit volunteers to match business travel rates
S. 1177 — Volunteer Driver Tax Appreciation Act of 2025 · Filed by Amy Klobuchar (D-MN) · 1 cosponsor · Introduced Mar 27, 2025 · Referred to committee
Your members of Congress
Enter a ZIP to see where your representative and both senators stood on this bill.
Looked up on this device — your ZIP is never stored on our servers.
What it does
This bill raises the tax deduction for charitable mileage (driving for nonprofits) from a fixed 14 cents per mile to match the business travel mileage rate, which the IRS adjusts annually. Volunteers who drive for charities will receive a larger tax deduction, making charitable work financially less costly.
Why we flagged it
The bill's sole operative mechanism is a tax-code amendment that increases the deductible mileage rate for charitable driving. It is a straightforward tax incentive designed to reduce the out-of-pocket cost of volunteer transportation.
What the text implies
- The rate is now indexed to IRS business mileage adjustments, meaning charitable deductions will automatically increase when business rates rise, without requiring new legislation.
- Volunteers in higher tax brackets receive proportionally larger tax benefits from the increased deduction, creating a regressive subsidy structure.
The full analysis lists 3 implications of this text.
Who stands to gain
Individual volunteers (tax deduction benefit); Nonprofit organizations (indirectly, through reduced volunteer cost-sharing)