I just started traveling locally in Kentucky back in September. According to my recruiter the 50 mile rule pertains to the housing stipend and per diem. If you travel 50 miles or more to a travel assignment then the housing stipend and per diem are tax free. I am now on my second assignment and decided to accept an assignment closer to home due to a need to spend more time with my family before a military deployment. Because I am inside 50 miles they were able to shift some of my per diem and housing allowance to my hourly rate so that I can at least benefit from any overtime by having a higher hourly rate. I hope this helps some. Good luck!