For 2010, the optional mileage allowance for owned or leased autos (including vans, pickups, or panel trucks) is 50¢ per mile for business travel, down 5¢ from the 2009 allowance of 55¢ per mile. The depreciation component of the mileage rate is 23¢ per mile (up from 21¢ per mile for 2009).

Employers who require employees to supply their own autos (whether owned or leased) may reimburse them at a rate that doesn’t exceed 50¢ per mile for employment-connected business mileage during 2010. The reimbursement is treated as a tax-free accountable-plan reimbursement if the employee substantiates the time, place, business purpose, and mileage of each trip. Additionally, an employee’s personal use of lower-priced company autos during 2010 may be valued at 50¢ per mile if the qualifying requirements are met.