With respect to any employee's mileage allowance, these rates apply to payments that are BOTH
1) paid on or after July 1, 2008, and
2) with respect to transportation expenses paid or incurred by the employee on or after July 1, 2008.
Therefore, advanced allowances paid before July 1, regardless if the transportation expense is incurred on or after July 1, are subject to the lower rates in effect before this change becomes effective.
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Mileage Rate effective January 1, 2008 - June 30, 2008:
The standard mileage rates for the use of a car (including vans, pickups or panel trucks) is: