Privately Owned Vehicle/Mileage Reimbursement Costs
Mileage is reimbursable when a personal vehicle is used in the conduct of company business. Commuting expenses are not considered company business expenses, but are the personal expenses of an employee. Commuting expenses are defined as the mileage between the employee’s residence and his/her “assigned work site.” Privately owned vehicle mileage reimbursement costs are allowable costs, to the extent they are reasonable.
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Mileage Reimbursement Rates
There are two mileage reimbursement rates that businesses use in reimbursing for mileage. They are the Internal Revenue Service (IRS) and Joint Travel Regulations (JTR). The IRS rate is what is used for business purposes, and the JTR is what is allowable for US Government contracting. Normally, the rates are the same, but if the JTR is lower than the IRS rate, then the difference between the two would be deemed unallowable.
Internal Revenue Service[1]
The mileage reimbursement rate and calculation for the US is based on the maximum rate allowed by the IRS. The rates are as follows:
| Date | Amount | |
|---|---|---|
| July 2011 | $.55 | |
| 2012 | $.55 |
