New York State Assembly Introduces Bill to Increase Tax Credit for Volunteer Firefighters and Ambulance Workers

Strategic Insights -

The New York State Assembly has introduced a bill to amend the tax law and increase the tax credits for volunteer firefighters and ambulance workers. The bill aims to recognize the invaluable service these individuals provide to their communities and help to bolster volunteer ranks across the state. The current tax credit of $200 for eligible individuals and $400 for eligible married joint filers has not been raised since its enactment in 2007. According to a study by the Firemen's Association of the State of New York, volunteer firefighters alone save the state more than $4.7 billion each year.

Key Takeaways:

  • The bill increases the tax credit for volunteer firefighters and ambulance workers from $200 to $800 for eligible individuals and from $400 to $1600 for eligible married joint filers.
  • The tax credit increase is recommended by the Volunteer Firefighter Recruitment and Retention Task Force convened by the State Department of Homeland Security and Emergency Services in 2022.
  • The bill aims to recognize the invaluable service volunteer firefighters and ambulance workers provide to their communities and help to bolster volunteer ranks across the state.
  • According to a study by the Firemen's Association of the State of New York, volunteer firefighters alone save the state more than $4.7 billion each year.
  • The current $200 income tax credit amount carries a fiscal of $15.2 million/year, while increasing it by $600 would cost $45.6 million/year.
  • The bill applies to taxable years beginning on or after January 1, 2024, and has no fiscal implications on the adopted 2023-24 FY budget.

Statistics:

  • $200: current tax credit for eligible individuals
  • $400: current tax credit for eligible married joint filers
  • $800: proposed tax credit for eligible individuals
  • $1600: proposed tax credit for eligible married joint filers
  • $4.7 billion: estimated annual savings for the state due to volunteer firefighters
  • 20,000: number of fewer volunteer firefighters in New York State today compared to 20 years ago
  • $15.2 million/year: fiscal impact of current $200 income tax credit
  • $45.6 million/year: fiscal impact of increasing the income tax credit by $600

Sources:

  • [New York State Assembly, An act to amend the tax law, in relation to tax credits for volunteer firefighters and volunteer ambulance workers.](https://www.nyassembly.gov/leg/)
  • [Firemen's Association of the State of New York, Volunteer Firefighter and Ambulance Worker Tax Credit.] (https://www.fasny.com/about/legislative-affairs/tax-credit/)
  • [State Department of Homeland Security and Emergency Services, Volunteer Firefighter Recruitment and Retention Task Force Report.](https://www.dhses.ny.gov/)