If you have filled up your gas tank recently, turned on the news, listened to the radio, or read a newspaper you’ve probably noticed gas prices are steadily dropping and in a big way. This time last year the national average price for a gallon of regular gas according to AAA’s gas price tracker was $3.259 and Lancaster County’s average was slightly higher at $3.395 per gallon. This year, according to AAA’s gas price tracker the national average is $2.082 per gallon of regular gas with Lancaster County again coming in slightly higher at $2.403 per gallon. As other costs of living continue to increase this is welcome news. But wait, there is more good news for those of you who claim your business mileage.
The IRS revises its Standard Mileage Reimbursement Rate each year. This is the rate that can be used as a deduction for business travel. This rate reflects fuel costs as well as wear and tear on your vehicle. This year, the IRS has increased the rate to 57.5 cents per mile from the 2014 rate of 56 cents per mile. It is interesting that the lower gas prices are not reflected in the rate this year, perhaps it will show up in the revised rate for 2016. The 57.5 cent per mile is here to stay, at least for 2015, so take advantage of it while you can. For more information on Mileage Reimbursement see our previous article.