General Services Administration July 10, 2007 Washington, DC 20405

FEDERAL TRAVEL REGULATION\
Amendment 2007-03

TO: Heads of Federal agencies

Subject: Amendment 2007-03, FTR Case 2007-301, Relocation
Allowances-Standard Mileage Rate for Moving Purposes

1\. [Purpose.]{.underline} The General Services Administration (GSA),
Office of Governmentwide Policy (OGP), plans to establish the Internal
Revenue Service (IRS) Standard Mileage Rate for moving purposes as the
rate at which agencies will reimburse an employee for using a privately
owned vehicle (POV) for relocation. The FTR and any corresponding
documents may be accessed at GSA\'s website at
[*[http://www.gsa.gov/ftr.]{.underline}*](http://www.gsa.gov/ftr.)

2\. [Effective date:]{.underline} September 25, 2007.

3\. [Backqround.]{.underline} Relocation is an area that continuously
evolves because of changes in the housing market, transportation
industry, technology, etc. The General Services Administration (GSA),
Office of Governmentwide Policy (OGP), routinely reviews the relocation
regulations to address current Government relocation needs, to
incorporate appropriate private industry policies, and to implement any
best practices that fit well into the Federal setting.

To help accomplish these goals, GSA created the Relocation Best
Practices Committee (RBPC) in 2002. Many of this Committee\'s
recommendations were reflected in a proposed rule published in the
*Federal Register* at 69 FR 68111, November 23 2004.

The proposed rule included 30 changes; however, this final rule focuses
on only one of those proposed changes, namely adopting the mileage rate
established by the IRS for computing relocation, or moving, costs for
income tax purposes for reimbursing Federal employees for using their
POVs for relocation travel to a new duty station for PCS. GSA will
address the remaining Federal Travel Regulation (FTR) changes from the
proposed rule in one or more future final rule(s).

Section 302-4.300 of the FTR (41 CFR 302-4.300) currently provides
tiered reimbursements for POV use in en route travel to the new duty
station based on the number of occupants. This final rule will eliminate
the tiered rates. Instead, the agency will reimburse the employee who
relocates by POV at the established IRS rate for use of a car for moving
purposes. GSA will publish this rate in an FTR Bulletin to coincide with
updates issued by the IRS. The IRS generally issues such updates

annually, but for special cases, such as Hurricane Katrina, the IRS may
issue updates during the year and GSA will follow suit.

The IRS allows two methods for computing the standard mileage rates for
use of a car in moving: a single mileage rate or actual expense. GSA has
decided to allow only reimbursement at the single mileage rate, since
this approach is easier to administer and does not involve collecting
and auditing small value receipts.

Many transferees compare the reimbursement rate for using a POV for
temporary duty travel (TDY) to the rate for using a POV for relocation
travel and do not understand why those rates differ. The more generous
rate for using a POV for TDY travel is intended to cover the fixed costs
of operating an automobile, such as depreciation (or lease payments),
insurance, and license and registration fees, as well as the operating
cost. None of these fixed costs are tax deductible as a moving expense,
so none of these fixed costs are included in the moving rate mileage
calculation. The IRS intends the rate for using a POV in moving to cover
only actual operating expenses (e.g., fuel, oil, tolls, etc.). The IRS
then uses the operating costs for a combination of standard vehicles to
calculate the moving rate.

GSA consulted the members of the Executive Relocation Steering Committee
about this change. All members agreed that this adoption of the single
IRS rate is appropriate.

This FTR rule was published in the *Federal Register* at 72 FR 35187,
June 27, 2007.

4\. [Explanation of chanqes.]{.underline} This final rule:

-   Revises section 302-4.300 to reflect the Internal Revenue Service
    single mileage rate for relocation by POV.

-   Adds section 302-4.303 to disallow the use of the IRS actual expense
    rate for relocation in CONUS.

5\. [Filinq instructions.]{.underline} Remove and insert the following
pages to the FTR:

> [Remove pages]{.underline}

Chapter 302 TOC, 302-v and 302-vi

[Insert pages]{.underline}

Chapter 302 TOC, 302-v and 302-vi

> 302-4-1 thru 302-4- 02-4-1 thru 302-4-4
>
> ![](media/image1.png){width="2.4194444444444443in"
> height="0.7194444444444444in"}

RUSSELL H. PENTZ *1;^7^*

Assistant Deputy ssoc. Admin. Office of Travel, Transportation And Asset
Management

Chapter 302-Relocation Allowances **CONTENTS**

> §302-3.423-If I separate from Government service upon completion of my
> TCS, what relocation expenses will my agency pay upon my separation?
>
> §302-3.424-If I separate from Government service prior to completion
> of my TCS, what relocation
>
> expenses will my agency pay upon my separation?
>
> §302-3.425-If I have been authorized successive temporary changes of
> station and reassigned from one
>
> temporary official station to another, what expenses will my agency
> pay upon completion of my last
>
> assignment or my separation from Government service?
>
> **-Permanent Assignment to Temporary Official Station**
>
> §302-3.426-How is payment of my TCS expenses affected if I am
> permanently assigned to my temporary official station?
>
> §302-3.427-What relocation allowances may my agency pay when I am
> permanently assigned to my temporary official station?
>
> §302-3.428-If I am permanently assigned to my temporary official
> station, is there any limitation on the

weight of household goods I may transport at Government expense to my
official station? §302-3.429-Are there any relocation allowances my
agency may not pay if I am permanently assigned to

> my temporary official station?
>
> **Subpart F-Agency Responsibilities**
>
> §302-3.500-What governing policies and procedures must we establish
> for paying a relocation allowance under this Part 302-3?
>
> §302-3.501-Must we establish any specific procedures for paying a
> relocation allowance to new appointees?
>
> §302-3.502-What factors should we consider in determining whether to
> authorize a TCS for a long-term assignment?
>
> **-Service Agreements**
>
> §302-3.503-Must we require employees to sign a service agreement?
>
> §302-3.504-What information should we include in a service agreement?
>
> §302-3.505-How long must we require an employee to agree to the terms
> of a service agreement? §302-3.506-May we pay relocation expenses if
> the employee violates his/her service agreement?
>
> **-New Appointees**
>
> §302-3.507-Once we authorize relocation expenses for new appointees or
> student trainees what expenses must we pay?
>
> §302-3.508-What relocation expenses are not authorized for new
> appointees or student trainees?
>
> **-Overseas Assignment and Return**
>
> §302-3.509-What policies must we follow when appointing an employee to
> an overseas assignment? §302-3.510-When must we pay return travel for
> immediate family members?
>
> §302-3.511-What must we consider when determining return travel for
> immediate family member(s) for

compassionate reasons prior to completion of the service agreement?\
§302-3.5 12-How many times are we required to pay for an employee\'s
return travel?

> **-Overseas Tour Renewal Travel**
>
> §302-3.513-May we allow a travel advance for tour renewal agreement
> travel?
>
> §302-3.514-Under what conditions must we pay for tour renewal
> agreement travel? §302-3.515-What special rules must we apply for
> reimbursement of tour renewal travel for employees

stationed, assigned, appointed or transferred to/from Alaska or Hawaii?

> **-SES Separation for Retirement**
>
> §302-3.516-What must we do before issuing payment for SES
> separation-relocation travel? §302-3.517 May we issue travel advances
> for separation relocation?

(Amendment 2007-03) 302-v

**I**

> **AMENDMENT 2007-03 SEPTEMBER 25, 2007**

**CONTENTS** FEDERAL TRAVEL REGULATION

**Subchapter C-Permanent Change of Station (PCS) Allowances for
Subsistence and Transportation Expenses**

**Part 302-4-Allowances for Subsistence and Transportation Subpart
A-Eligibility**

> §302-4. l-What is a permanent change of station (PCS)?
>
> §302-4.2-Am I eligible for subsistence and transportation allowances
> for PCS travel under this part?
>
> **Subpart B-Travel Expenses**
>
> §302-4.100-What PCS travel expenses will my immediate family members
> receive?
>
> §302-4.101-Must my immediate family member(s) and I begin PCS travel
> at the old official station and end at the new official station?
>
> **Subpart** C-Per **Diem**
>
> §302-4.200-What per diem rate will I receive for en route relocation
> travel within CONUS? §302-4.201-How are my authorized en route travel
> days and per diem determined for relocation travel? §302-4.202-Are
> there any circumstances in which a per diem allowance for my immediate
> family members
>
> is not allowed?
>
> **-Transferred Employees Only**
>
> §302-4.203-How much per diem will my spouse receive if he/she
> accompanies me while I am performing PCS travel?
>
> §302-4.204-If my spouse does not accompany me but travels
> unaccompanied at a different time, what per diem rate will he/she
> receive?
>
> §302-4.205-If my spouse and I travel on the same days along the same
> general route by using more than one POV, is my spouse considered
> unaccompanied?
>
> §302-4.206-How much per diem will my immediate family receive?
>
> **Subpart D-Mileage Rates for Use of POV**
>
> §302-4.300-What is the POV mileage rate for PCS travel within the
> continental United States (CONUS)? §302-4.301-Do the rates in
> §302-4.300 apply if I am performing overseas tour renewal agreement
> travel? §302-4.302-Are there circumstances that would allow me to
> receive a higher mileage rate OCONUS? §302-4.303-For relocation within
> the continental United States (CONUS), may I use the actual expense
>
> method of reimbursement instead of the POV mileage rate specified in
> §302-4.300?
>
> **Subpart E-Daily Driving Distance Requirements**
>
> §302-4.400-Will I be required to drive a minimum distance per day?
> §302-4.401-Are there exceptions to this daily minimum?
>
> §302-4.402-Will I be required to document the circumstances causing
> the delay? §302-4.403-Does this exception require authorization by my
> approving official?
>
> **Subpart F-Use of More Than One POV**
>
> §302-4.500-If I am authorized to use more than one POV, what are the
> allowances?
>
> §302-4.501-If I use an additional POV that was not authorized for PCS
> travel, will I be reimbursed for the additional POV?
>
> **Subpart G-Advance of Funds**
>
> §302-4.600-May I request an advance of funds for per diem and mileage
> allowances for PCS travel?
>
> **Subpart H-Agency Responsibilities**
>
> §302-4.700-What governing policies must we establish for payment of
> allowances for subsistence and transportation expenses?
>
> §302-4.701-What PCS travel expenses must we pay?
>
> §302-4.702-What PCS travel expenses must we pay for the employee\'s
> immediate family members?

302-vi

Chapter 302-Relocation Allowances

Part 302-4-Allowances for Subsistence and Transportation

**§302-4.203**

> **PART** 302-4-ALLOWANCES FOR SUBSISTENCE AND TRANSPORTATION

**Authority:** 5 U.S.C. 5738; 20 U.S.C. 905 (a); E.O. 11609, 36 FR
13747,3 CFR, 1971-1973 Comp., p. 586.

**Subpart A-Eligibility**

**Note to [Subpart ]{.underline}**[A:]{.underline} Use of pronouns
\"I\", \"you\", and their variants throughout this subpart refers to the
employee, unless otherwise noted.

**§302-4.1 What is a permanent change of station (PCS)?**

A permanent change of station (PCS) is an assignment of a new appointee
to an official station or the transfer of an employee from one official
station to another on a permanent basis.

**§302-4.2 Am I eligible for subsistence and transportation**

> **allowances for PCS travel under this part?**

Yes, you are eligible for subsistence and transportation allowances for
PCS travel if your agency specifically autho­rizes relocation expenses
under this part and are:

\(a\) Transferred employees (within or outside CONUS);

> \(b\) New appointees (within or outside CONUS); and

\(c\) An employees assigned to posts of duty outside CONUS in connection
with either overseas tour renewal agreement travel or return travel to
places of residence for separation.

**Note to** [§302-4.2:]{.underline} Also see tables at
[§§302-3.2]{.underline} and [302-3.101.]{.underline}

**Subpart B-Travel Expenses**

**§302-4.100 What PCS travel expenses will my immediate family members
receive?**

Except as specifically provided in [§302-4.202,]{.underline} the rules
(for TDY travel) in [Chapter 301]{.underline} of this title will be used
for payment of the travel expenses of your immediate family members.

**§302-4.101 Must my immediate family member(s) and I begin PCS travel
at the old official station and end at the new official station?**

No, if an alternate location is used, reimbursement is lim­ited to the
allowable cost by the usually traveled route between your old and new
official stations.

**Subpart C-Per Diem**

**§302-4.200 What per diem rate will I receive for en route**

> **relocation travel within CONUS?**

Your per diem for en route relocation travel between your old and new
official stations will be at the standard CONUS rate (see applicable FTR
Per Diem Bulletins available on the Internet at
*[[http://www.gsa.gov/perdiem)]{.underline}](http://www.gsa.gov/perdiem)).*
You will be reim­bursed in accordance with [§§301-11.100]{.underline}
through [301-11.102]{.underline} of this title.

**§302-4.201 How are my authorized en route travel days**

> **and per diem determined for relocation travel?**

Your authorized en route travel days and per diem are determined as
follows: The number of authorized travel days is the actual number of
days used to complete the trip, but not to exceed an amount based on a
minimum driving distance per day determined to be reasonable by your
agency. The mini­mum driving distance shall be not less than an average
of 300 miles per calendar day. An exception to the daily minimum driving
distance may be made when delay is beyond control of the employee, such
as when it results from acts of God or restrictions by Government
officials; when the employee is physically handicapped; or for other
reasons acceptable to the agency.

**§302-4.202 Are there any circumstances in which a per diem allowance
for my immediate family members is not allowed?**

> Yes, per diem for your immediate family members cannot

be authorized if you are:

> \(a\) A new appointee;
>
> \(b\) Assigned to posts of duty outside CONUS returning to

place of actual residence for separation; or

> \(c\) Being relocated under the Government Employees

Training Act (5 U.S.C. 4109).

**Transferred Employees Only**

**§302-4.203 How much per diem will my spouse receive if**

**he/she accompanies me while I am performing PCS**

> **travel?**

The maximum amount your spouse may receive if he/she accompanies you
while you are performing PCS travel is three-fourths of your daily per
diem rate.

(Amendment 2007-03) 302-4-1

> **AMENDMENT 2007-03 SEPTEMBER 25, 2007**

**[§302-4.204]{.underline}**

**§302-4.204 If my spouse does not accompany me but travels
unaccompanied at a different time, what per diem rate will he/she
receive?**

If your spouse does not accompany you but travels unac­companied at a
different time, he/she will receive the same per diem rate to which you
are entitled.

**§302-4.205 If my spouse and I travel on the same days**

> **along the same general route by using more than one**
>
> **POV, is my spouse considered unaccompanied?**

No; for per diem purposes, you and your spouse are con­sidered to be
traveling together if you travel on the same days along the same general
route by using more than one POV.

**§302-4.206 How much per diem will my immediate family receive?**

Immediate family members age 12 or older receive three­fourths of your
per diem rate, and children under 12 receive one-half of your per diem
rate.

**Subpart D-Mileage Rates for Use of POV**

**§302-4.300 What is the POV mileage rate for PCS travel**

> **within the continental United States (CONUS)?**

For approved/authorized PCS travel by POV in CONUS, the mileage
reimbursement rate is the same as the moving expense standard mileage
rate established by the Internal Revenue Service (IRS) for moving
expense deductions. See IRS guidance available on the Internet at
*[[www.irs.gov]{.underline}](http://www.irs.gov/).* GSA will publish the
rate for mileage reimbursement in an FTR Bulletin on an intermittent
basis to coincide with the rate changes published by the IRS. You may
find the FTR Bulle­tins at
[*[wwwgsa.gov/relo.]{.underline}*](http://wwwgsa.gov/relo.)

**§302-4.301 Do the rates in [§302-4.300]{.underline} apply if I am**

**performing overseas tour renewal agreement travel?**

No, POV mileage must not be authorized for overseas tour renewal
agreement travel.

**§302-4.302 Are there circumstances that would allow me**

> **to receive a higher mileage rate OCONUS?**

Yes, your agency may authorize a higher mileage rate at a rate not to
exceed the maximum rate prescribed in [§301-11.303]{.underline} of this
title when:

\(a\) You are expected to use the POV on official business at the new
official station;

\(b\) The common carrier rates for the facilities provided between the
old and new official stations, the related con­structive taxicab fares to
and from terminals, and the per diem allowances prescribed under this
part justify a higher mileage rate as advantageous to the Government as
determined by your agency; or

> [FEDERAL TRAVEL]{.underline} [REGULATION]{.underline}

\(c\) The costs of driving the POV to, from, or between offi­cial
stations located outside CONUS justify a higher mileage rate as
advantageous to the Government.

**§302-4.303 For relocation within the continental United States
(CONUS), may I use the actual expense method of reimbursement instead of
the POV mileage rate specified in [§302-4.300?]{.underline}**

> No, for a PCS relocation within CONUS involving POV

usage, your agency will reimburse you at the standard mile­

age rate specified in [§302-4.300.]{.underline}

**Subpart E-Daily Driving Distance\
Requirements**

**§302-4.400 Will I be required to drive a minimum**

> **distance per day?**

Yes, your agency may establish a reasonable minimum driving distance
that may be more than, but not less than an average of 300 miles per
calendar day.

**§302-4.401 Are there exceptions to this daily minimum?**

Yes, your agency may authorize exceptions to the daily minimum driving
distance when there is a delay beyond your control such as acts of God,
restrictions by Governmental authorities, or other acceptable reasons;
e.g., a physical hand­icap or special needs. Your agency must have a
designated approving official authorize the exception.

**§302-4.402 Will I be required to document the**

> **circumstances causing the delay?**

Yes, you must provide a statement on your travel claim explaining the
circumstances that caused the delay.

**§302-4.403 Does this exception require authorization by**

> **my approving official?**

Yes, authorization by your approving official is required for any
exception to the daily minimum driving distance.

**Subpart F-Use of More Than One POV**

**§302-4.500 If I am authorized to use more than one POV,**

> **what are the allowances?**

When you are authorized to use more than one POV, the allowances under
[§§302-4.300]{.underline} and [302-4.302]{.underline} apply for each
POV.

**§302-4.501 If I use an additional POV that was not**

> **authorized for PCS travel, will I be reimbursed for the**
>
> **additional POV?**

No, your agency must authorize you reimbursement of the use of more than
one POV before you are entitled to reim­bursement.

302-4-2

Chapter 302-Relocation Allowances

[Part]{.underline} [302-4-Allowances]{.underline} [for]{.underline}
[Subsistence]{.underline} [and]{.underline} [Transportation]{.underline}

**Subpart G-Advance of Funds**

**§302-4.600 May I request an advance of funds for per**

> **diem and mileage allowances for PCS travel?**

You may request advance of funds for per diem and mile­age allowances for
PCS travel, except for overseas tour renewal agreement travel.

**Subpart H-Agency Responsibilities**

**Note to [Subpart H:]{.underline}** Use of pronouns \"we\", \"you\",
and their variants throughout this subpart refers to the agency, unless
otherwise noted.

**§302-4.700 What governing policies must we establish for payment of
allowances for subsistence and transportation expenses?**

For payment of allowances for subsistence and transporta­tion expenses,
you must establish policy and procedures gov­erning:

\(a\) How you will implement the regulations throughout this part;

\(b\) A reasonable minimum driving distance per day that may be more
than, but not less than a average of 300 miles per calendar day when use
of a POV is used for PCS travel and when you will authorize an
exception;

\(c\) Designation of an agency approving official who will authorize an
exception to the daily minimum driving distance; and

\(d\) When you will authorize the use of more than one POV for PCS
travel.

**§302-4.701 What PCS travel expenses must we pay?** Except as
specifically provided in this chapter, PCS travel expenses you must pay
are:

> **[§302-4.705]{.underline}**
>
> \(a\) Per diem;
>
> \(b\) Transportation costs; and
>
> \(c\) Other travel expenses in accordance with

5 U.S.C. 5701-5709 and [Chapter 301]{.underline} of this title.

**§302-4.702 What PCS travel expenses must we pay for**

> **the employee\'s immediate family members?**

Except as specifically provided in this chapter, the reim­bursement
limits in [Chapter 301]{.underline} of this title govern payment of
travel expenses you must pay for the employee\'s immedi­ate family
members.

**§302-4.703 How do we compute the per diem for an**

> **established minimum driving distance per day?**

Per diem for an established minimum driving distance per day is computed
based on the lodgings-plus per diem system as described in
[§§301-11.100]{.underline} through [301-11.102]{.underline} of this
title.

**§302-4.704 Must we require a minimum driving distance**

> **per day?**

Yes, you must establish a minimum driving distance not less than an
average of 300 miles per day. However, an excep­tion to the daily minimum
driving distance may be made when the delay is:

\(a\) Beyond control of the employee, e.g., results from acts of God or
restrictions by Government officials;

> \(b\) Due to a physical handicap; or
>
> \(c\) For other reasons acceptable to you.

**§302-4.705 What are the allowances if the employee uses**

> **more POVs than authorized?**

If the employee uses more POVs than authorized, reim­bursement will be
made as if all persons traveled in the num­ber of PO Vs that you
authorized.

(Amendment 2007-03) 302-4-3

FEDERAL TRAVEL REGULATION

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302-4-4 (Amendment 2007-03)