DELIVER Act of 2025
- Bill Number
- S. 895
- Origin Chamber
- Senate
- Congress
- 119th Congress, Session 1
- Policy Area
- Taxation
- Status
- Introduced
- Latest Action
- 2025-03-06: Read twice and referred to the Committee on Finance.
- Last Updated
- 2025-05-08T18:50:02Z
AI-Generated Summary
Purpose
The DELIVER Act of 2025 aims to encourage volunteer participation in meal delivery services for vulnerable populations by increasing the tax-deductible mileage rate for such charitable activities. It modifies the Internal Revenue Code (IRC) to allow a higher reimbursement rate, making it more financially appealing for volunteers to drive and deliver meals.
Key Provisions
- Amendment to IRC Section 170(i): Adds a new rule specifying that when a vehicle is used for delivering meals to homebound individuals who are elderly, disabled, frail, or at risk, the deductible mileage rate equals the standard business mileage rate set by the Internal Revenue Service (IRS) for that tax year. (The business rate is typically higher than the standard charitable rate and adjusts annually based on costs like fuel and maintenance.)
- Scope: Applies specifically to miles driven for meal delivery to the defined groups; other charitable driving remains under the standard charitable rate.
- Effective Date: Changes take effect for miles driven on or after the date the Act is enacted into law.
Significant Changes to Existing Law
- Under current IRC rules, deductions for charitable vehicle use (like volunteer driving) are limited to a fixed 14 cents per mile, regardless of purpose. This Act introduces an exception, elevating the rate to the IRS's business standard (e.g., around 65-70 cents per mile in recent years) solely for meal deliveries to elderly, disabled, frail, or at-risk homebound individuals.
- This is a targeted increase, not a broad overhaul, preserving the general charitable deduction framework while incentivizing this specific service.
Potential Impacts
- On Citizens: Volunteers (especially drivers for programs like Meals on Wheels) gain higher tax deductions, potentially reducing their out-of-pocket costs and increasing participation in community service. Indirectly benefits elderly, disabled, frail, and at-risk individuals by supporting more reliable meal deliveries.
- On Government Agencies: The IRS will need to implement and administer the new rule in tax forms and guidance, possibly increasing deduction claims and slightly affecting federal tax revenue (though the impact is likely minimal due to the niche focus).
- On International Relations: No direct effects, as this is a domestic tax policy change.
- Broader Effects: Could boost nonprofit meal delivery programs, addressing needs in aging populations without requiring new federal funding.
Main Stakeholders Affected
- Volunteers and Taxpayers: Primary beneficiaries through enhanced deductions for driving miles.
- Nonprofit Organizations: Entities like Meals on Wheels or similar groups that rely on volunteers for home deliveries, as higher incentives may expand their volunteer base.
- Vulnerable Populations: Elderly, disabled, frail, and at-risk homebound individuals who receive meals, gaining from potentially improved service availability.
- Internal Revenue Service (IRS): Responsible for enforcing the updated tax rules and updating publications.
Notable Legal, Constitutional, or Political Implications
- Legal: Aligns with IRC's goal of encouraging charitable contributions via deductions; no conflicts with existing tax law, but requires IRS rulemaking for clarity on qualifying deliveries and "at-risk" definitions.
- Constitutional: No apparent issues, as it involves standard congressional authority over tax policy under Article I, Section 8 of the U.S. Constitution.
- Political: Bipartisan sponsorship (by Senators King and Cornyn) suggests broad appeal in supporting seniors and volunteers; could set precedent for targeted tax incentives in social services, potentially influencing future legislation on aging or charity.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Sen. King, Angus S., Jr. [I-ME]
Cosponsors (1)
Recent Actions
- 2025-03-06: Read twice and referred to the Committee on Finance.
- 2025-03-06: Introduced in Senate
Bill Versions
- Delivering Elderly Lunches and Increasing Volunteer Engagement and Reimbursements Act of 2025 — issued 2025-03-06 — PDF (2 pages)