THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

INTRODUCED BY HORNAMAN, SOLOBAY, BARRAR, BEAR, BEYER, BRENNAN, CARROLL, CASORIO, CAUSER, CURRY, CUTLER, DeLUCA, DePASQUALE, DONATUCCI, FABRIZIO, FLECK, GALLOWAY, GIBBONS, GOODMAN, GROVE, GRUCELA, HARHAI, HARPER, HESS, KORTZ, KULA, LEVDANSKY, LONGIETTI, MAHONEY, MARKOSEK, MARSHALL, McILVAINE SMITH, MICOZZIE, MILLER, MUSTIO, O'NEILL, PASHINSKI, PERZEL, READSHAW, REED, SAINATO, SCAVELLO, SIPTROTH, K. SMITH, STABACK, STEVENSON, STURLA, SWANGER, TALLMAN, VULAKOVICH, WALKO AND WHITE, FEBRUARY 4, 2009

REFERRED TO COMMITTEE ON VETERANS AFFAIRS AND EMERGENCY PREPAREDNESS, FEBRUARY 4, 2009  

AN ACT

Providing for municipal volunteer fire service incentives.

TABLE OF CONTENTS

Chapter 1.  Preliminary Provisions

Section 101.  Short title.

Section 102.  Purpose.

Section 103.  Definitions.

Chapter 3.  Municipal Tax Credit

Section 301.  Program authorization.

Section 302.  Claim.

Section 303.  Limitations.

Chapter 5.  Volunteer Fire Service Credit

Section 501.  Volunteer fire service credit program.

Section 502.  Service record.

Section 503.  Service record report.

Section 504.  Certification.

Chapter 30.  Miscellaneous Provisions

Section 3001.  Penalties for false reporting.

Section 3002.  Effective date.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

CHAPTER 1

PRELIMINARY PROVISIONS

Section 101.  Short title.

This act shall be known and may be cited as the Municipal

Volunteer Firefighter Incentive Act.

Section 102.  Purpose.

The purpose of this act is to authorize municipalities to

enact a tax credit against an active volunteer firefighter's

earned income tax liability as a financial incentive to:

(1)  Indicate the municipality's acknowledgment of the

value of and the absence of any public cost for volunteer

fire protection provided by active volunteer firefighters.

(2)  To encourage other individuals to newly volunteer or

for former firefighters to consider rejoining as an active

volunteer firefighter in a volunteer fire company.

Section 103.  Definitions.

The following words and phrases when used in this act shall

have the meanings given to them in this section unless the

context clearly indicates otherwise:

"Active volunteer firefighter."  A volunteer firefighter who

has complied with the requirements of the volunteer fire service

credit program and who is certified by the State Fire

Commissioner under section 504.

"Commissioner."  The State Fire Commissioner of the

Commonwealth.

"Department."  The Department of Revenue of the Commonwealth.

"Earned income tax."  A tax on earned income and net profits

levied under chapter 3 of the act of December 31, 1965 (P.L.

1257, No.511), known as The Local Tax Enabling Act.

"Governing body."  A city council, borough council,

incorporated town council, board of township commissioners,

board of township supervisors, governing council of a home rule

municipality or optional plan municipality or a governing

council of any similar purpose government which may be created

by statute after the effective date of this section.

"Local Tax Enabling Act."  The act of December 31, 1965 (P.L.

1257, No.511), known as The Local Tax Enabling Act.

"Municipality."  A city, borough, incorporated town or

township located in this Commonwealth.

"Tax credit."  The tax credit granted under section 301.

"Volunteer fire company."  A nonprofit chartered corporation,

association or organization located in this Commonwealth that

provides fire protection services and may offer other voluntary

emergency services within this Commonwealth.

"Volunteer fire service credit program."  The program

established under section 501 to determine the active status of

a volunteer firefighter.

"Volunteer firefighter."  A member of a volunteer fire

company.

CHAPTER 3

MUNICIPAL TAX CREDIT

Section 301.  Program authorization.

(a)  Establishment.--A municipality that levies an earned

income tax may establish by resolution or ordinance a tax credit

against an individual's liability imposed under chapter 3 of the

Local Tax Enabling Act for active service as a volunteer

firefighter.

(b)  Amount.--A municipality must set forth in the resolution

or ordinance the amount of the tax credit. If the total earned

income tax liability is less than the amount established by the

municipality, the tax credit shall equal the remaining tax

liability.

(c)  Public notice.--At least 30 days prior to adoption of

the resolution or ordinance, the governing body of a

municipality shall give public notice of its intent to adopt a

resolution or ordinance to establish a tax credit and conduct at

least one public hearing on the issue.

(d)  Specific notice.--A municipality that establishes a tax

credit under subsection (a) shall notify the commissioner in the

manner and pursuant to any schedule prescribed by the

commissioner.

Section 302.  Claim.

An individual who satisfies all of the following criteria may

claim a tax credit established under this act:

(1)  The individual is subject to an earned income tax

imposed by a municipality that has established a tax credit

under section 301.

(2)  The individual is certified by the commissioner

under section 504.

Section 303.  Limitations.

A tax credit established under this act may be used against

only the individual's earned income tax liability for the

current taxable year.

CHAPTER 5

VOLUNTEER FIRE SERVICE CREDIT

Section 501.  Volunteer fire service credit program.

(a)  Establishment.--Within 90 days of the effective date of

this section, the commissioner shall establish a volunteer fire

service credit program that establishes the annual requirements

for the designation of a volunteer firefighter as in active

service at a volunteer fire company.

(b)  Activities.--The volunteer fire service credit system

shall consider the following activities in determining credit

toward a designation of active service:

(1)  The number of emergency calls to which a volunteer

firefighter responds.

(2)  The level of training and participation in formal

training and drills for a volunteer firefighter.

(3)  The total amount of time expended by a volunteer

firefighter on administrative and other support services,

including fundraising and facility or equipment maintenance.

(4)  The involvement in other events or projects that aid

the financial viability, emergency response or operational

readiness of a volunteer fire company.

(c)  Regulations.--The commissioner shall promulgate

regulations necessary to implement this section. The

Pennsylvania Fire Information Reporting System or any other

system as determined by the commissioner shall be used to submit

information required in the service record report.

Section 502.  Service record.

(a)  Log.--The chief of a volunteer fire company or the

chief's designee shall establish and maintain a service log that

documents the activities of each volunteer firefighter that

qualify for credit toward active service under the volunteer

fire service credit system and the calculation of the total

credits earned for each volunteer firefighter in the volunteer

fire company.

(b)  Review.--Service logs established and maintained by

volunteer fire companies shall be subject to periodic review by

the Auditor General, the department, the governing body of the

municipality where the volunteer fire company is located and the

governing body of a municipality where the volunteer fire

company provides fire protection services or volunteer emergency

services.

Section 503.  Service record report.

(a)  Report.--The chief of a volunteer fire company or the

chief's designee shall, within 15 days of the end of the

calendar year, submit a report to the commissioner that complies

with the requirements under subsection (b).

(b)  Contents.--The report shall include all of the

following:

(1)  The name and address of each volunteer firefighter

in the volunteer fire company.

(2)  A calculation of the total number of credits earned

by each volunteer firefighter and a determination whether

each volunteer firefighter qualifies for a designation as an

active volunteer firefighter.

(3)  Any additional information deemed necessary by the

commissioner.

Section 504.  Certification.

(a)  Compliance.--On or before February 1 of each year, the

commissioner shall certify each volunteer firefighter reported

under section 503 as having complied with the requirements for

certification as an active volunteer firefighter under the

volunteer fire credit service system.

(b)  Documentation.--The commissioner, in cooperation with

the department, shall develop a procedure and a system to

document the certification of active volunteer firefighters for

tax purposes under this act and to provide notification of the

certification to all of the following:

(1)  Each municipality that notifies the commissioner of

the establishment of a tax credit under this act.

(2)  Each volunteer firefighter listed on a service

record report.

CHAPTER 30

MISCELLANEOUS PROVISIONS

Section 3001.  Penalties for false reporting.

The following shall apply:

(1)  Any person who knowingly makes or conspires to make

a false service record report under this act to the

commissioner commits a misdemeanor of the first degree.

(2)  Any person who knowingly provides or conspires to

provide false information that is used to compile a service

record report under this act commits a misdemeanor of the

first degree.

Section 3002.  Effective date.

This act shall take effect in 60 days.