Senate to Consider Tax Credits for Fire & EMS Volunteers

Provides $23 million in state credits beginning in FY 2009-10  

The Senate today will take action on legislation which would provide tax credits to Pennsylvania's emergency first responders and their employers in order to help volunteer fire companies and emergency medical service companies recruit and retain members.

The package of bills would provide nearly $23 million in tax credits and tuition reimbursements by fiscal year 2009-10 for fire and emergency medical services volunteers and employers.

"Volunteers miss time with their families, experience significant out-of-pocket expenses, and most importantly, risk their lives to keep our communities safe," said Senator Lisa Baker (R-Luzerne), Chair of the Senate Veterans Affairs and Emergency Preparedness Committee. "We need to do everything we can to support them."

While the state has taken an active role in assisting Pennsylvania's volunteer fire and EMS organizations with the purchase of equipment and facilities through the Volunteer Loan Assistance Program and the $25 million annual grant program, Baker said much more remains to be done in the area of helping to promote the recruitment and retention of volunteers.

Senator Mike Waugh (R-York), Co-Chair of the Legislative Fire and Emergency Services Caucus, believes the tax credits are long overdue.

"They will provide our 2,462 volunteer fire and EMS departments with the tools they need to more aggressively retain and recruit volunteers," Waugh said. "That's why tax credits have consistently ranked as the number one legislative priority of the fire and EMS community."

In 2003, a bi-partisan commission of legislators, emergency responders, and representatives from the municipal government associations for Pennsylvania's cities, boroughs, and townships, was convened to review the needs of Pennsylvania's fire and emergency medical services communities.

The SR 60 Commission Report outlined 23 recommendations to improve Pennsylvania's fire and emergency medical services through changes to statutory language, reforming the delivery of services, offering tax credits to fire and EMS workers, and establishing grant programs. Since 2004, legislation has been passed in five of the 23 recommendation categories – Fire Grants, Death Benefits, Procurement, Local Service Tax, and Local Government Fire/EMS Codification.

"We are pleased by the bi-partisan support for this important initiative for our volunteer community," said Senate Majority Whip Jane Orie (R-Allegheny). "And we encourage the House to consider the package expeditiously so that the bills can be included in the final 2008-09 state budget."

Three bills are scheduled to be considered by the Senate today: 

Senate Bill 1314, sponsored by Senator Baker, establishes a $500 personal tax credit for active members of volunteer firefighting and emergency medical services organizations who are certified by the State Fire Commissioner or the Director of the Emergency Medical Services Office in the Department of Health.

Senate Bill 1315, introduced by Senator Waugh, creates an undergraduate tuition reimbursement program for active volunteers with a 50 percent reimbursement for each course credit.

Senate Bill 1316, sponsored by Senator Baker, establishes a $1,000 tax credit against an employer's personal income tax, corporate net income tax, or capital stock and franchise tax for each member of the volunteer fire and/or emergency services employed full-time up to but not to exceed $5000 per employer during a specific tax year. 

Senate Bill 1169, introduced by Senator Andrew Dinniman (D-Chester), will be considered by the Senate Appropriations Committee today. This bill would authorize a municipality that levies earned income tax to establish a tax credit against an individual's liability under the Local Tax Enabling Act for active service as an emergency responder. The credit could be up to $400.

The tax credit package is part of the Senate's larger SR 60 agenda. Legislation already passed this session includes:

Senate Bill 1225, sponsored by Senator John Pippy (R-Allegheny), which creates a statewide mutual aid agreement system to assist counties and municipalities in responding to disasters.

Senate Bill 987, sponsored by Senator Baker and House Bills 1131, 1133, and 1135, sponsored by Representative Tony Melio, which establish uniform language in the municipal codes regarding the provision of fire and emergency services.

Senate Bill 218, sponsored by Senator Browne (R-Lehigh), reformed the Emergency and Municipal Services Tax.  Enacted as Act 7 of 2007, the legislation renamed the tax as the "Local Services Tax" and required municipalities to allocate a minimum of 25 percent of the total revenue to support emergency services including police, fire and emergency medical services.

Senate Fire/EMS Tax Credits (PDF)

Contact:

Lee Ann Labecki (Senator Baker)
717-787-7428
Erin Marsicano (Senator Waugh)
717-787-3817
Lee Derr (Senator Orie)
717-787-6538