Business Standard Mileage Rate Increases for Last Half of 2008 The IRS has announced that the optional mileage allowance for owned or leased autos (including vans, pickups, or panel trucks) will increase 8 cents from 50.5 to 58.5 cents per mile for business travel from July 1, 2008 to December 31, 2008 to better reflect the real cost of operating an auto in this period of rapidly rising gas prices. This rate can also be used by employers to reimburse tax-free under an accountable plan employees who supply their own autos for business  use. The rate for using a car to get medical care or in connection with a move that qualifies for the moving expense will also increase 8 cents for the last half of 2008 from 19 to 27 cents per mile. The revised standard mileage rates apply to deductible transportation expenses paid or incurred for business, medical, or moving expense purposes on or after July 1, 2008. The rates apply to mileage allowances that are paid both (1) to an employee on or after July 1, 2008; and (2) with respect to transportation expenses paid or incurred by the employee on or after July 1, 2008. The IRS's increase in the business standard mileage rate is undoubtedly a result of recent pressure brought to bear on the IRS to take action to relieve taxpayers suffering from skyrocketing gas prices. On June 11, 2008, Senator Norm Coleman (R-MN) sent a letter to IRS Commissioner Shulman requesting the IRS increase the 2008 standard mileage rates to better reflect the cost of travel. Coleman noted that in 2005, the IRS raised the standard mileage rates for the last four months of the year rather than waiting until year-end due to a large increase in gas prices. The plight of taxpayers suffering from ever increasing gas prices has not been ignored by legislators. On May 19, 2008, Senator Charles Schumer (D-NY) introduced a bill in the Senate "Reimburse Our American Drivers (ROAD) Act of 2008" that would temporarily increase the standard mileage rate to 70 cents per mile on travel for business, medical, and moving expense-related purposes. Federal employees would also be allowed to use this rate. The rate would be in effect during all of 2008. The legislation has been referred to the Senate Finance Committee for consideration.