Rep. Gomez Touts Clean Energy Used Vehicle Tax Credit Bill and IRS Mileage Reimbursement Increase at Roundtable with Lyft
Los Angeles, October 26, 2022 | Gomez Press Office (202-770-6934)
LOS ANGELES – Today, Congressman Jimmy Gomez (CA-34) held a roundtable discussion with local Lyft drivers to discuss his bill to create a clean energy used vehicle tax credit and the benefits of the IRS increasing the 2022 optional standard mileage rate — the rate rideshare drivers use to deduct the cost of using their vehicles for work.
“One of my top priorities in Congress is lowering costs for working families — from the grocery store to the pump,” said Congressman Gomez. “That’s why I proudly voted for the Inflation Reduction Act, which cuts costs, combats inflation, and puts more money in the pocket of every American. One of my bills that was included, the Affordable EVs for Working Families Act, will put used clean energy vehicles in reach for all community members, including rideshare drivers, potentially saving them money on gas. I am pleased that the IRS under President Biden recently adjusted the mileage reimbursement rate for rideshare drivers nationwide, meaning that they will take home more money. I will continue fighting to lower costs and expand opportunities for working families.”
“We thank Congressman Gomez for his advocacy in making electric vehicles (EV) more affordable through tax credits and increasing the IRS mileage reimbursement rate to help California Lyft drivers directly,” said Heather Foster, Head of Government Affairs at Lyft. “Lyft was proud to support the Inflation Reduction Act (IRA) and we look forward to working with the Congressman and other lawmakers to make transportation costs more affordable for drivers and riders and increase access to electric vehicles.”
“I started driving with Lyft full time once my teaching program was cut during the pandemic. I drive a hybrid vehicle now and would love to drive an electric vehicle in the future to reduce my carbon footprint,” said Jason Clark who drives with Lyft. “I appreciate Congressman Gomez for opening his door today to educate us about the new IRS tax benefits for drivers. I am also grateful for his work to ensure more of us can afford an electric vehicle.”
In August, Rep. Gomez’s bill, H.R. 4817 the Affordable EVs for Working Families Act, passed into law in the Inflation Reduction Act. This legislation creates a tax credit for the purchase of used electric and clean vehicles for the first time, worth up to $4,000 or 30% of the vehicle’s sales price, and help working families and rideshare drivers transition to the green economy.
In July, the IRS announced an adjustment to the 2022 optional standard mileage rate used to deduct the cost of operating an automobile for business purposes to 62.5 cents a mile, up from 58.5 cents. The adjustment means rideshare drivers for companies like Lyft can save more money on gas by claiming a higher reimbursement amount on their taxes.