[Congressional Record Volume 155, Number 8 (Wednesday, January 14, 2009)]
[Senate]
[Pages S392-S393]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. CARDIN (for himself, Ms. Snowe, Mr. Schumer, Mr. Ensign, 
        Ms. Feingold, Mr. Grassley, Mr. Leahy, Mr. Alexander, Mr. Burr, 
        Mr. Dodd, Ms. Cantwell, and Mr. Sanders):
  S. 243. A bill to amend the Internal Revenue Code of 1986 to allow 
the Secretary of the Treasury to establish the standard mileage rate 
for use of a passenger automobile for purposes of the charitable 
contributions deduction and to exclude charitable mileage 
reimbursements for gross income; to the Committee on Finance.
  Mr. CARDIN. Mr. President, I rise today to reintroduce a bill, the 
Giving Incentives to Volunteers Everywhere Act. In today's economic 
climate, Americans need relief--especially people who volunteer to help 
the less fortunate in their communities. We can't let an out-of-date 
mileage rate for volunteers who use their vehicles for charitable 
purposes exacerbate the pinch at the pump they are experiencing. Now,

[[Page S393]]

while it is true that gas prices have retreated from their historic 
highs since last summer, the principle still stands: the Internal 
Revenue Service, IRS, should have discretion in setting the mileage 
rate for charitable organizations. This legislation will provide 
immediate relief for volunteers serving our elderly, poor, frail, and 
at-risk Americans. I'm pleased that the senior Senator from Maine, 
Senator Snowe, and my other colleagues, the senior Senator from New 
York, Senator Schumer, and the junior Senator from Nevada, Senator 
Ensign, have joined me in introducing this legislation. They have 
worked extremely hard on this issue. I would also like to thank 
Senators Grassley, Feingold, Leahy, Alexander, Sanders, Burr, Dodd, and 
Cantwell for being original co-sponsors of this bill.
  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.
  Last 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.
  Just recently, the IRS again modified the standard mileage rates for 
computing the deductible costs of operating an automobile for business, 
medical, or moving expenses. As of January 1, the revised standard 
mileage rate for business purposes was decreased from 58.5 cents to 55 
cents. For medical and moving expenses, the IRS decreased the rate from 
27 cents per mile to 24 cents per mile. This ability to change the rate 
due to the cost of gasoline or the economic climate is crucial and 
should be permitted for the Nation's charitable organizations.
  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. It also 
provides a floor for volunteers, not allowing their rate to be set 
lower than moving and medical rate. 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. Additionally, this 
bill will allow the organization to reimburse the volunteer up to the 
business rate without any tax impact to 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 
became 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 Giving 
Incentives to Volunteers Everywhere bill will do just that, and I hope 
my colleagues will support it.
  Mr. President, I ask unanimous consent that a copy 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. 243

       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 ``Giving Incentives to 
     Volunteers Everywhere Act of 2009'' or the ``GIVE Act of 
     2009''.

     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, 
     which rate shall not be less than the standard mileage rate 
     used for purposes of section 213.''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to miles traveled after the date of the enactment 
     of this Act.

     SEC. 3. EXCLUSION FROM GROSS INCOME FOR CHARITABLE MILEAGE 
                   REIMBURSEMENTS.

       (a) In General.--Part III of subchapter B of chapter 1 of 
     the Internal Revenue Code of 1986 (relating to items 
     specifically excluded from gross income) is amended by adding 
     at the end the following new section:

     ``SEC. 139C. CHARITABLE MILEAGE REIMBURSEMENT.

       ``(a) In General.--In the case of an individual, gross 
     income shall not include amounts received from an 
     organization described in section 170(c)(2) as reimbursement 
     of operating expenses with respect to the use of a passenger 
     automobile for the benefit of such organization.
       ``(b) Limitation.--The amount excluded from gross income 
     under subsection (a) shall not exceed the product of the 
     standard mileage rate used for purposes of section 162 
     multiplied by the number of miles traveled for which such 
     reimbursement is made.
       ``(c) Application to Volunteer Services Only.--Subsection 
     (a) shall not apply with respect to any expenses relating to 
     the performance of services for compensation.
       ``(d) No Double Benefit.--A taxpayer may not claim a 
     deduction or credit under any other provision of this title 
     with respect to reimbursements excluded from income under 
     subsection (a).
       ``(e) Exemption From Reporting Requirements.--Section 6041 
     shall not apply with respect to reimbursements excluded from 
     income under subsection (a).
       ``(f) Maintenance of Records.--For purposes of this 
     section, no exclusion shall be allowed under subsection (a) 
     for any reimbursement unless with respect to such 
     reimbursement the taxpayer meets substantiation requirements 
     similar to the requirements of section 274(d).''.
       (b) Conforming Amendment.--The table of sections for part 
     III of subchapter B of chapter 1 of such Code is amended by 
     adding at the end the following new item:

``Sec. 139C. Charitable mileage reimbursement.''.

       (c) Effective Date.--The amendments made by this section 
     shall apply to miles traveled after the date of the enactment 
     of this Act.
                                 ______