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The gas mileage reimbursement rate has been raised to 58.5 cents a mile for the last six months of 2008, as announced by the Internal Revenue Service. The increase, says the IRS, was meant to alleviate the impact of rising gas prices on the income of American taxpayers and vehicle owners and drivers. The new optional rate will replace the old 50.5 rate used prior to the announcement.The new gas mileage reimbursement rate applies to business vehicles. For vehicles used in medical and moving purposes, the rate will be raised to 27 cents per mile from 19 cents. However, motor vehicles used by charitable organizations will remain at 14 cents since rates for such vehicles are established by statute and not by the federal agency.Motor vehicle drivers and owners should never be lax in keeping tabs of the mileage of their cars. Proper record-keeping will ensure that they will be able to get the credits due them. The changes in the mileage rates are a big plus to taxpayers, but businesses and individuals can increase their tax credit further by making their vehicles more fuel efficient.One of the options is owning a hydrogen fuel cell vehicle. These vehicles are the most attractive types when it comes to earning tax credits. They run on hydrogen and oxygen derived from the atmosphere. Taxpayers who own such cars can save on fuel, help in minimizing air pollution and get more gas mileage tax reimbursement from the IRS.Another sure way of earning more tax credits is using alternative fuel motor vehicles. These vehicles can earn the owner as much as $4,000 mileage tax credits. They ran on liquefied natural gas, compressed natural gas, liquid petroleum gas, liquid with 85 percent methanol or any mixture of biodiesel of 20 percent or more.Hybrid electric automobiles can also earn owners lots of tax credits. However, how much reimbursement a taxpayer will get will also depend on how many models of the electric cars were sold by the manufacturer.For those who do not wish to replace their existing vehicles but would like to increase their gas mileage tax credits, they have the option of converting some, or all their vehicles, to become more energy efficient. They can use hydrogen modification kits to allow their cars to run on hydrogen or gasoline. Engine, ignition and cooling system modifications are needed before conversion kits can work. Gas mileage reimbursement opportunities should be taken advantage of by taxpayers whenever they could. At the rate fuel prices are rising, it seems that the problem of skyrocketing gas expenses will continue to be felt by all for quite some time. Article Tags: Mileage Reimbursement Rate, Mileage Reimbursement, Reimbursement Rate, Business Vehicles
Gas,Mileage,Reimbursement,Rate