WASHINGTON — New legislation that would give volunteer firefighters and EMS personnel tax benefits won unanimous approval Tuesday in the House of Representatives.
It is part of a package of tax incentives, called the Heroes Earnings Assistance and Relief Tax (HEART) Act of 2007, to help volunteer first responders, veterans and active duty military.
The bill will exclude from taxable income all property tax benefits and up to $360 per year of any other benefit paid to volunteer firefighters and EMS personnel by state and local units of government.
The bill will now go to the Senate, where it will be considered by the Committee on Finance.
In 2002, volunteer benefits took a hit when the IRS ruled that property tax abatements to volunteers should be treated as taxable income, significantly diminishing volunteers’ financial incentives.
Statistics show that the number of volunteer firefighters in the country have decreased over the last 20 years, with the average age of volunteers increasing. The hope is that with these new incentives, volunteer numbers will rise nationwide. According to the Joint Committee on Taxation, passage of the HEART Act (H.R. 3997) will result in $994 million in tax savings for volunteer firefighters and EMS personnel over the next 10 years.
The HEART bill was introduced in May this year by its co-sponsors Senators Chris Dodd (D-CT) and Gordon Smith (R-OR). A similar piece of legislation was introduced in the House of Representatives by Congressman John Larson (D-CT) in February.
Among the groups supporting the bill has been the NVFC. It worked closely with other organizations and members of the Ways and Means Committee to ensure that language providing tax relief to volunteer firefighters and EMS personnel was included in the bill.