Authorizes a tax credit for certain volunteer drivers
Under this bill, volunteer drivers will be able to claim a tax credit beginning January 1, 2025. The proposed law is designed to provide necessary financial support to individuals who offer their time and resources to assist organizations with the qualified transportation of persons or property. The bill limits the total amount of tax credits available to one million dollars per fiscal year, which will help manage the fiscal impact on state resources. Furthermore, this annual cap can be adjusted for inflation, ensuring that it maintains relevance over time.
Senate Bill 1386 introduces a new tax credit for volunteer drivers who provide transportation services for qualified organizations. This legislation aims to incentivize individuals to support charitable organizations by compensating them for their mileage driven in service of these groups. As outlined, the tax credit will amount to sixty-five cents per mile driven, capped at $3,000 per taxpayer. This financial recognition for volunteer drivers is intended to encourage community engagement and bolster the operations of non-profit organizations that rely on volunteer transportation services.
Notably, the tax credits are non-refundable and cannot be transferred or sold; however, they may be carried forward for three subsequent tax years. This stipulation aims to prevent the potential for abuse of the tax credit while allowing taxpayers flexibility in claiming the total credit over time. The bill also includes a sunset provision that would automatically terminate the credit program on December 31, 2030, unless reauthorized by the General Assembly. This feature is designed to periodically assess the effectiveness of the credit and ensures that the program remains appropriate for the state's needs.