HOUSE REPUBLICAN STAFF ANALYSIS Bill: Committee: Floor Manager: Date: Staff:
HF 2459 Ways and Means Rep. Stanerson April 28, 2014 Kristi L. Kielhorn (2-5290)
House Ways and Means: House Floor: Senate Floor: Governor:
PASSED March 25 PASSED April 1 PASSED April 25
(23-0) (29-0) (48-0)
Volunteer EMS/Fire Fighter and Reserve Peace Officer Tax Credit Increase House File 2459 increases the tax credit for volunteer fire fighter and volunteer emergency medical services personnel. It also adds reserve peace officers to the persons eligible for the credit. Fiscal Note – HF 2459 will impact the General Fund by approximately $1 million in FY 15.
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Section by Section Analysis Section 1 – Definition of Reserve Peace Officer This section adds the definition of reserve peace officer to the definition section of the income tax code. Section 2 – Definition of Volunteer Fire Fighter This section amends the definition of volunteer fire fighter to remove the requirement that the person not be a full-time member of a paid fire department. (Not precluded from the credit just because they are a volunteer who is also a full-time paid fire fighter elsewhere). Section 3 – Non-Refundable Tax Credit This section increases the tax credit for volunteer fire fighters and volunteer emergency medical services personnel from $50 to $100. This credit is currently non-refundable and stays non-refundable under the bill. Section 4 – Non-Refundable Tax Credit This section creates a tax credit for reserve peace officers for $100. This credit is non-refundable. Section 5 – Applicability This section makes the bill applicable to tax years beginning on or after January 1, 2014.
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Amendment Analysis
1
Senate Amendment H-8316: The amendment clarifies that a paid EMS/firefighter can also claim the volunteer tax credit if they are a volunteer in a city or township that has a mutual aid agreement or is in a benefitted district with the service that pays them. The Department of Revenue was denying those credits. It does not impact the fiscal note because the note is based on the total number of volunteers, which already includes these same people.
2
