LD1520

Reduces state income tax on mileage reimbursements for charitable services above federal business rates.

This bill modifies state income tax rules to exclude from taxable income any mileage reimbursements for charitable services that exceed the federal business mileage rate. For tax years starting after January 1, 2026, only the portion of the reimbursement that surpasses the federal business rate will be subject to state income tax. This change aims to provide tax relief for volunteers who drive for charitable organizations.