The Pennsylvania House of Representatives has unanimously passed legislation to exempt income tax on length-of-service awards for volunteer firefighters. The bill, introduced by state Representatives Joe Kerwin and Justin Fleming, aims to provide financial relief to those serving in this capacity.
“Firefighters answer the call 24/7 to protect our communities. There are great demands on their time, and they shouldn’t be taxed on the income that departments use as a retention incentive,” said Kerwin, representing Dauphin County.
The proposed legislation seeks to exclude contributions under length-of-service award programs from being defined as income for the purposes of Pennsylvania’s Personal Income Tax.
Fleming, also representing Dauphin County, emphasized the dedication of volunteer firefighters: “Every day, our volunteer firefighters give their time and put themselves in danger to safeguard our community’s health, safety, and property. Our bill keeps the hard-earned money these men and women deserve in their pockets.”
Length-of-service award programs are used by some fire companies as a recruitment and retention tool amid a statewide shortage of firefighters. Over 90% of Pennsylvania’s 2,400 fire companies rely on volunteers.
Kerwin and Fleming introduced the bill after learning that current regulations allow contributions made through these programs to be taxed as income. The issue was brought to their attention by officials from Lower Paxton Township’s volunteer fire departments.
House Bill 1306 will now proceed to the Senate for further consideration.
