A bill to provide for computing the amount of the deductions allowed to rural mail carriers for use of their automobiles.

Provides that, for taxable years beginning after 1984, rural letter carriers are permitted to compute the amount of their deduction for use of their automobiles in performance of such services: (1) by using a standard mileage rate for all such miles of such use equal to 150 percent of the basic standard rate; or (2) without applying the limitation on deductions rules where the business use of the automobile used in performing such services is not greater than 50 percent of the time.

Prohibits the use of 150 percent of the basic standard mileage rate in determining the allowable deduction where the taxpayer claimed an investment tax credit or depreciation deduction for such automobile.