A staff report
The Internal Revenue Service (IRS) has revised its mileage rates for 2024, impacting the deductible costs associated with using a car for business, charitable, medical, or moving purposes. Here’s a breakdown of the key changes:
1. Business Standard Rate Increase:
– The business standard rate for car usage (including vans, pickups, or panel trucks) has risen from 65.5 cents per mile to 67 cents per mile, effective January 1, 2024.
2. OSBM Adjustment:
– In line with G.S. 138-6(a)(1), the Office of State Budget & Management (OSBM) will adjust the allowable rate of reimbursement for travel by officers and employees on official state business to align with the new IRS mileage rates.
3. Policy Update:
– The State Budget Manual’s Travel Policies and Regulations section (5.2.13) was updated in 2022. It stipulates that, unless otherwise specified, OSBM will adopt the new IRS mileage rates every January 1. State employees will be reimbursed at a rate not exceeding the IRS business standard mileage rate, as per agency policies.
4. Confirmation Process:
– Agencies are reminded to check the IRS website annually, specifically before January 1, to confirm the latest mileage reimbursement rates. This ensures compliance with the updated standards.
5. Information Resources:
– Additional details on IRS standard mileage rates can be found on the IRS website, OSBM’s website, or OSBM’s Budget Manual section 5, Travel Policies.
6. Contact for Questions:
– For specific inquiries about these changes, agencies are encouraged to reach out to their OSBM Budget Execution Analyst.
Stay informed and compliant with these updates to make the most of the revised IRS mileage rates for the year 2024.
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