[Congressional Record Volume 143, Number 55 (Thursday, May 1, 1997)]
[Senate]
[Page S3902]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. MURKOWSKI (for himself and Mr. Cochran):
  S. 676. A bill to amend the Internal Revenue Code of 1986 to increase 
the standard mileage rate deduction for charitable use of passenger 
automobiles; to the Committee on Finance.


               the charitable equity mileage act of 1997

  Mr. MURKOWSKI. Mr. President, in the past week, we have heard a great 
deal of discussion regarding voluntarism in America. In Philadelphia, 
President Clinton has been joined by former President Bush and former 
Chairman of the Joint Chiefs of Staff, Colin Powell, in what has been 
styled a voluntarism summit.
  On the floor of the Senate, we have been attempting to move 
legislation, which I believe should not be controversial, that would 
protect volunteers from fear of legal actions resulting from their 
efforts. I would hope that the impasse over this bill could be broken 
and we could move forward on this important bill.
  In the spirit of encouraging more volunteer efforts in America, I am 
today introducing the Charitable Equity Mileage Act of 1997. This bill 
will increase the standard mileage rate deduction for charitable use of 
an automobile from 12 cents a mile to 18 cents a mile. I think this 
bill should be unanimously supported by my colleagues on both sides of 
the aisle.
  Mr. President, many of our citizens who volunteer for charitable 
activities incur expenses for which they are not reimbursed. For 
example, when an individual uses his or her automobile to deliver a 
meal to a homebound elderly individual, or to transport children to 
Scouting activities, the volunteer usually pays the transportation cost 
out of pocket with no expectation of reimbursement.
  I believe the costs associated with charitable transportation 
services ought to be deductible at a rate which fairly reflects the 
individual's actual costs. This is especially important for volunteers 
living in rural States who have to travel long distances to provide 
community services.
  Congress in 1984 set the standard mileage expense deduction rate of 
12 cents per mile for individuals who use their automobiles in 
connection with charitable activities. At the time, the standard 
mileage rate for business use of an automobile was 20.5 cents per mile. 
In the intervening 13 years, the business mileage rate has increased to 
30.5 cents per mile but the charitable mileage rate has remained 
unchanged at 12 cents per mile because Treasury does not have the 
authority to adjust the rate.
  By raising the charitable mileage rate to 18 cents a mile, my 
legislation restores the ratio that existed in 1984 between the 
charitable mileage rate and the business mileage rate. In addition, the 
legislation authorizes the Secretary of the Treasury to increase the 
charitable mileage rate in the same manner as is currently allowed for 
business mileage expenses.
  All of us agree that with the changing role of the Federal 
Government, we need to do more to encourage voluntarism in our country. 
Volunteers who provide transport services should be allowed to deduct 
such costs at a rate which fairly reflects their true out-of-pocket 
costs. That is precisely what this bill does and I urge my colleagues 
to join with me in sponsoring this important legislation.
  Mr. President, I have a letter of support for my bill from the 
American Legion and I ask unanimous consent that this letter be printed 
in the Record.
  I further ask unanimous consent that the text of the bill be printed 
in the Record.
  There being no objection, the material was ordered to be printed in 
the Record, as follows:

                                 S. 676

       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 ``Charitable Travel Equity Act 
     of 1997''.

     SEC. 2. INCREASE IN STANDARD MILEAGE RATE EXPENSE DEDUCTION 
                   FOR CHARITABLE USE OF PASSENGER AUTOMOBILE.

       (a) In General.--Section 170(i) 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.--
       ``(1) General rule.--Except as provided in paragraph (2), 
     for purposes of computing the deduction under this section 
     for use of a passenger automobile, the standard mileage rate 
     shall be 18 cents per mile.
       ``(2) Taxable years beginning after 1998.--Not later than 
     December 15 of 1998, and each subsequent calendar year, the 
     Secretary may prescribe an increase in the standard mileage 
     rate allowed under this subsection with respect to taxable 
     years beginning in the succeeding calendar year if the 
     Secretary determines that such increase is necessary to 
     reflect increased costs in the use of passenger 
     automobiles.''
       (b) Effective Date.--The amendment made by subsection (a) 
     shall apply to taxable years beginning after December 31, 
     1996.
                                                                    ____



                                          The American Legion,

                                   Washington, DC, April 24, 1997.
     Hon. Frank Murkowski,
     U.S. Senate, Hart Senate Office Building, Washington, DC.
       Dear Senator Murkowski: The American Legion fully supports 
     the ``Charitable Travel Equity Act of 1997,'' to amend the 
     Internal Revenue Code of 1986 to increase the standard 
     mileage rate deduction for charitable use of passenger 
     automobiles.
       Not only does The American Legion applaud the increase in 
     the mileage rate deduction, but more importantly this measure 
     fixes the problem that has not allowed for incremental 
     increases without an act of Congress action. The standard 
     mileage rate deduction for business use of passenger 
     automobiles has increased significantly while no adjustments 
     were made in the charitable use rate. Granting the Secretary 
     the authority to make prescribed adjustments will provide 
     fairness and promote additional volunteerism.
       Thank you for your continuous leadership on behalf of 
     America's veterans and their dependents.
           Sincerely,
                                                  Steve Robertson,
                        Director, National Legislative Commission.
                                 ______