Relates to increasing the volunteer firefighters' and ambulance workers' credit

Title of bill

An act to amend the tax law, in relation to increasing the volunteer firefighters' and ambulance workers' credit

Purpose or general idea of bill

This bill provides a tax credit of five hundred dollars to any volunteer firefighter or ambulance worker who has been active for the entire taxable year for which the credit is sought. For first responders who qualify for this tax credit that have served a minimum of five years they shall be allowed one thousand dollars of credit.

As for the case of husband and wife who file a joint tax return, one thousand dollars shall be offered where at least one of the qualifying spouses has served as an active volunteer, first responder for less than five years. For a husband and wife who file a joint return, who have served a minimum of five years, and qualify for the credit, they shall be allowed a credit of two thousand dollars.

Summary of specific provisions

Section 1 amends the tax law by stating that for taxable years beginning on and after January 1, 2007 a resident taxpayer who serves as either an active volunteer fire fighter or ambulance worker who has been in good standing for a period of four years or less shall be allowed a tax credit of five hundred dollars.

Section 2 states that for taxable years beginning on and after January 1 , 2016 the active first responders who have served for a minimum of five years shall be allowed a tax credit of one thousand dollars.

In the case of a husband and wife who file a joint tax return and who both individually qualify for the credit, and have served less than five years, they shall qualify for a credit of one thousand dollars. If the husband and wife who qualify for this return have served a minimum of five years they shall be allowed two thousand dollars of credit.

specifies that a the volunteer firefighter or ambulance worker must be in good standing for a period of four years or less to qualify for a tax credit of five hundred dollars and in good standing for a minimum of five years to qualify for a tax credit of one thousand dollars.

Section 3 effective date.

Justification

Currently, volunteer firefighters and ambulance workers receive a personal income tax credit of $200 for their first five years and an increase to $500 after five years of service in good standing. This bill would increase the base tax credit to $500 going up to $1,000 after five years of service in good standing. It would also increase the tax credit for married volunteer firefighters and ambulance workers to $2,000 who each have five or more years and are in good standing.

Volunteer firefighters and ambulance workers serve their communities with selflessness and dedication and deserve an increased tax benefit for their service. The cost savings that volunteer first responders provide to our communities and state is yet another reason an increase in their personal income tax credit is necessary.

In addition to giving volunteers a well earned tax credit, it can also serve as another incentive for volunteer fire departments to increase their recruitment. Fire department membership has declined in recent years and these incentives are a tool to bolster recruitment and continue the invaluable services volunteer first responders provide.

Legislative history

None.

Fiscal implications

None.

Effective date

This act shall take effect immediately.