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House Co-Sponsorship Memoranda
House of Representatives
Session of 2023 - 2024
Regular Session
MEMORANDUM
| Posted: | February 28, 2024 02:24 PM |
|---|---|
| From: | Representative Justin C. Fleming and Rep. Michael Stender |
| To: | All House members |
| Subject: | Exempting Length of Service Awards for Volunteer Firefighters from Income |
| Our volunteer firefighters donate their time and risk their lives every day to protect our health, safety, and property. More than 90 percent of Pennsylvania’s 2,400 fire companies are volunteer based. Pennsylvania is also experiencing a statewide volunteer firefighter shortage. Some fire companies choose to offer “length of service award programs” to volunteers who remain with the fire company for a dedicated amount of time. These award programs not only honor the sacrifices of the brave men and women who keep Pennsylvania safe, but also provide a retention incentive. Under Pennsylvania law, contributions made by a fire company to a volunteer firefighter through a length of service award program can be considered compensation and taxed as income. Therefore, the volunteer may owe personal income tax on these contributions, even if they are not yet eligible for the payment benefit. That is why I plan to introduce legislation to exclude contributions to length of service award programs from the definition of income under the Pennsylvania Personal Income Tax. Those who volunteer their time to fight fires and provide other vital emergency services in our Commonwealth should not have to pay income tax on length of service awards - especially before they are eligible to receive any payout. Please join me in taking this simple step to allow volunteer firefighters to receive 100% of the benefit from these awards. |
Introduced as HB2085