The House Finance Committee has approved a bill that seeks to exempt income tax on length-of-service awards for volunteer firefighters. The legislation, introduced by state Representatives Joe Kerwin and Justin Fleming, aims to support the retention of volunteer firefighters by removing tax burdens from these awards.
“Firefighters give so much of their time and talents to keep our communities safe. They shouldn’t be taxed on the income that departments use as a retention incentive,” said Representative Kerwin, who represents Dauphin County.
The proposed bill would amend the Pennsylvania Personal Income Tax code to exclude contributions to length-of-service award programs from being classified as taxable income.
Representative Fleming emphasized the critical role of volunteer firefighters in Pennsylvania, stating, “Our volunteer firefighters donate their time and risk their lives every day to protect our health, safety and property.” He noted that over 90% of the state’s 2,400 fire companies are staffed by volunteers.
To address the ongoing statewide firefighter shortage, some fire companies have implemented length-of-service award programs as incentives for volunteers who commit to serving for a specified period. The representatives believe these programs honor the sacrifices made by firefighters while also encouraging retention.
Currently, contributions made through these award programs can be considered compensation and are subject to taxation. The bill will now proceed to the full House of Representatives for further consideration.
