INCOME TAX DEDUCTION: VOLUNTEER FIREFIGHTER
House Bill 4341
Sponsor: Rep. A.T. Frank
Committee: Tax Policy
Complete to 8-21-01
A SUMMARY OF HOUSE BILL 4341 AS INTRODUCED 2-27-01
The bill would amend the Income Tax Act to allow a deduction for compensation paid to part-paid volunteer firefighters and for time donated by non-paid volunteer firefighters multiplied by the minimum wage. In either case, the deduction from adjusted gross income could not exceed $10,000. (A deduction reduces the amount of income subject to tax.)
Specifically, for volunteer firefighters identified under the part-paid classification in the Michigan fire incident reporting system, the deduction would be equal to compensation paid in the tax year for services as a volunteer firefighter, not to exceed $10,000.
For a volunteer firefighter identified under the non-paid classification, an amount equal to the minimum wage multiplied by the total number of hours spent in the tax year on 1) State-of-Michigan certified firefighters training; 2) local fire department training up to six hours per month; 3) business meetings relating directly to firefighting responsibilities; 4) fire runs as supported by state fire marshal reports; and 5) training required for firefighters by a state or federal agency.
MCL 206.30
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This analysis was prepared by nonpartisan House staff for use by House members in their deliberations, and does not constitute an official statement of legislative intent.