[Congressional Record Volume 154, Number 113 (Thursday, July 10, 2008)]
[Senate]
[Page S6567]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. CARDIN (for himself, Ms. Snowe, and Ms. Mikulski):
  S. 3246. A bill to amend the Internal Revenue Code of 1986 to allow 
the Secretary of the Treasury to set the standard mileage rate for use 
of a passenger automobile for purposes of the charitable contributions 
deduction; to the Committee on Finance.
  Mr. CARDIN. Mr. President, I rise today to introduce a bill, the Fair 
Deal for Volunteers Act. In today's economic climate, Americans need 
relief from sky-rocketing oil and gas prices. This applies to everyone, 
including people who engage in much-needed volunteer work. My bill will 
provide immediate relief for volunteers serving our elderly, poor, 
frail, and at-risk Americans. It gives the Internal Revenue Service 
authority to change the mileage rate--currently set by statute at 14 
cents per mile--for calculating the deductible cost of operating a 
vehicle for charitable purposes. We can't let an out-of-date mileage 
rate exacerbate the pinch at the pump for volunteers who selflessly 
provide so many vital goods and services in every community across 
America. I'm pleased that the senior Senator from Maine, Senator Snowe, 
and my colleague, the senior Senator from Maryland, Senator Mikulski, 
are original cosponsors of this bill and I thank them for their 
support.
  The Internal Revenue Code does not fix a rate for individuals who are 
required to use their own vehicle for work, or for individuals taking a 
mileage deduction for moving purposes. The IRS is able to increase the 
deduction amount for these purposes to reflect the current economic 
climate and dramatically higher fuel prices. This is exactly what the 
IRS recently did.
  As of July, the IRS modified the standard mileage rates for computing 
the deductible costs of operating an automobile for business, medical, 
or moving expenses. The revised standard mileage rate for business 
purposes increased from 50.5 cents per mile to 58.5 cents. For medical 
and moving expenses, the IRS increased the rate from 19 cents per mile 
to 27 cents per mile. I think the Nation's volunteers who travel on 
behalf of charitable organizations deserve an increase in their mileage 
rate, too.
  My bill gives the IRS flexibility in setting the rate so that 
volunteers for charitable organizations could be given the same tax 
benefit accruing for moving, medical, and business expenses. In today's 
climate of increasing food and fuel prices, this bill will help relieve 
some of the pressure on charitable organizations and their volunteers.
  Take Meals on Wheels, for example. This organization delivers 
nutritious meals and other nutrition services to men and women who are 
elderly, homebound, disabled, frail, or otherwise at-risk. The services 
Meals on Wheels provides significantly improve the recipients' quality 
of life and health, and often help to postpone institutionalization.
  Over the past year, there has been nearly a 20 percent increase in 
fuel and food prices, coupled with reduced government funding and fewer 
donations across the country. Nearly 60 percent of the estimated 5,000 
programs that operate under the auspices of the Meals on Wheels 
Association of America have lost volunteers, in large part because it 
is too expensive for the volunteers to drive back and forth. Nearly 
half the programs have eliminated routes or consolidated meal services. 
About 38 percent of the programs have switched to delivering frozen 
meals, and about 30 percent are cutting personal visits from 5 days a 
week to one.
  In Maryland, the Central Maryland Meals on Wheels has experienced an 
increase of 7 percent in food costs and suppliers are charging higher 
delivery fees. The cost to fill up the vans with gas has increased. 
Fuel costs averaged $72,538.70 in fiscal year 2007; this year, the 
costs have jumped to $86,790.63. This is an organization with 
volunteers serving over 3,100 elderly, disabled, frail and at-risk 
Marylanders. Its volunteers deserve relief from high gas prices just as 
much as people who use their car for work or for medical purposes or 
for moving.
  Throughout the United States, Meals on Wheels served over 3 million 
people and more than 250 million meals in fiscal year 2006. This is 
just one of thousands of charitable organizations. We need to encourage 
and support the Meals on Wheels volunteers and all other volunteers who 
need their cars to help their neighbors and communities. The Fair Deal 
for Volunteers Act will do just that, and I hope my colleagues will 
support it.
  Mr. President, I ask unanimous consent that the text of the bill be 
printed in the Record.
  There being no objection, the text of the bill was ordered to be 
printed in the Record, as follows:

                                S. 3246

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