Tax relief at the gas pump?

Legislation has been introduced before the U.S. Congress to raise the standard business mileage rate deduction from 50.5 cents to 70 cents per mile. The enhanced treatment would be retroactive to January 1, 2008. Sen. Charles Schumer, D-N.Y., a member of the Senate Finance Committee who introduced this bill (Sen. 3032), announced that the bill would also increase the deduction for charitable use of an automobile from 14 to 40 cents per mile. This treatment would likewise be retroactive to January 1, 2008.

In 2005, after Hurricane Katrina devastated the Gulf Coast and caused a spike in gasoline prices, the IRS made a mid-year adjustment to the standard mileage rate.

Meanwhile, legislation (H.R. 6009) has been introduced in the House to temporarily suspend federal fuel taxes on highway motor fuels. Taxes on highway motor fuel under Code Sections 4041 or 4081 would be suspended for 60 days.

(Sen. 3032; H.R. 6009)