Purpose of the Bill

This bill aims to increase the tax subtraction benefit for Minnesotans who volunteer as drivers for charitable organizations. It recognizes the financial contributions of these volunteer drivers by adjusting the amount they can subtract from their taxable income.

Main Provisions

• Increased Subtraction for Volunteer Drivers: Volunteer drivers can subtract from their income the mileage reimbursement they receive from charitable organizations above a certain threshold, leading to potential tax savings.
• Reimbursement Calculation: The subtraction is the amount over the standard mileage rate set for charitable services, plus two dollars per mile for the volunteer-driven miles.
• Limitations: The subtraction cannot exceed the standard business mileage rate as established by federal regulations.

Significant Changes to Existing Law

• The bill amends current legislation to increase the amount volunteer drivers can subtract from their income. This takes into account both the federal charitable mileage rate and adds a two-dollar per mile adjustment, potentially increasing the financial benefit for drivers.

Relevant Terms

volunteer drivers, charitable organizations, mileage reimbursement, charitable contribution, standard mileage rate, Internal Revenue Code.