[Congressional Record Volume 157, Number 8 (Thursday, January 20, 2011)]
[Extensions of Remarks]
[Page E89]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




     INTRODUCTION OF THE CHARITABLE DRIVING TAX RELIEF ACT OF 2011

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                          HON. THOMAS E. PETRI

                              of wisconsin

                    in the house of representatives

                       Thursday, January 20, 2011

  Mr. PETRI. Mr. Speaker, today, I am introducing the Charitable 
Driving Tax Relief Act of 2011 to remove a serious disincentive to 
participation in charitable activities. Private charitable activity 
plays an important role in our society, and it is important that 
Congress not stand in the way by penalizing those who wish to offer 
their services to these groups.
  Under current law, individuals that volunteer their time and energy 
by driving their personal vehicles on behalf of a charitable group can 
end up with an unpleasant surprise in the form of an unanticipated tax 
bill. Specifically, volunteer drivers receiving reimbursement for the 
use of their vehicle are taxed on these payments to the extent that 
they exceed 14 cents per mile. This treatment stands in stark contrast 
to the allowance for reimbursement for the business use of that same 
vehicle, 51 cents per mile in 2011.
  The Charitable Driving Tax Relief Act will equalize the tax treatment 
of charitable reimbursements with those received for business driving 
because the point of the payment is essentially the same, that is, to 
cover the cost of operating a personal vehicle while performing an 
important service in the pursuit of a greater good.
  To achieve this end, my legislation would exclude from gross income 
any reimbursement received for the use of a volunteer's car while 
assisting a charitable group, limited only by the cap the Internal 
Revenue Service sets regarding business driving. This treatment would 
be available only for services provided without compensation and 
drivers would be required to maintain sufficient records to 
substantiate the charitable use of their vehicles. Finally, this bill 
drops the requirement that charitable groups report these 
reimbursements to the IRS, removing an administrative and paperwork 
burden that detracts resources from a charity's larger purpose.
  Each day, thousands of Americans lend a hand in providing 
transportation services to a multitude of organizations engaged in good 
works. These activities include assisting individuals with their 
routine grocery shopping, providing the use of a four-wheel drive 
vehicle to transport home-visit nurses during inclement weather, 
delivering meals as part of a holiday food drive, helping individuals 
to keep their medical appointments, and many more similar activities.
  These volunteer drivers are donating their time and their talents, 
not their vehicles, and accepting reimbursement for the use of that 
car, incidental to their time and talent donation, is a reasonable act, 
which should not result in an additional tax liability. Today, when it 
comes to driving a personal vehicle, our tax code makes a distinction 
between business and charitable uses. This distinction is a mistake; it 
is a serious disincentive to charitable activities, and it should be 
corrected. I encourage my colleagues to support the continued efforts 
of our charity-minded constituents by cosponsoring the Charitable 
Driving Tax Relief Act of 2009.

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