By Sen. John C. Rafferty Jr.Under the Volunteer Retention and Recruitment Tax Credit -- Act 66 of 2008 -- volunteer fire, rescue and ambulance workers may receive a tax credit for active service.
The provision, which was included in the 2008-09 state budget, provides a $100 credit against state personal income tax liabilities for volunteer fire and emergency medical service workers for the 2008 tax year.
As a member of the Senate Appropriations Committee, I voted to move this measure to the full Senate which then passed it. More than 90 percent of municipalities in Pennsylvania rely on volunteer firefighters and first responders and it is hoped that this will help with recruitment and retention of our important emergency first responders.
A comprehensive report prepared by a bi-partisan group of legislatures, local government officials and emergency response representatives listed the top priorities and what legislative action needed to be taken.
With so many fire companies losing members, the number one priority was retention and recruitment strategies. In the last 25 years, the number of volunteer firefighters has dropped by more than half, from more than 150,000 to less than 70,000 today. We need to do something to keep them.
It is vital that Pennsylvania play a larger role in maintaining the viability of volunteer emergency service organizations. According to a Pennsylvania Fire and Emergency Services study, the value of services provided by our volunteer first responders is estimated at $6 billion. Without these dedicated volunteers, the cost to the Pennsylvania taxpayers for firefighters' salaries and benefits would be staggering. The cost of funding a tax credit for first responders is nowhere near that figure.
Pennsylvania's volunteer fire, rescue and ambulance personnel may qualify based on activities performed between Jan. 1 and Dec. 31, 2008. Applicants must be designated as "active volunteers" based on a point system prepared by the State Fire Commissioner and EMS Director.
Volunteers must earn a minimum of 50 points during the calendar year to be eligible for the tax credit. Points are accumulated based on response rates, attendance at training courses and meetings, sleep-in and standby times and holding elected and appointed positions, as well as for lifetime memberships and certifications, military leave and related administrative and support activities.
SB 1314 originally called for $100 tax credit in 2009, increasing each year by $100 until it reached $500 a year; it would be retained each year thereafter. But before the final budget was passed, it became a one-year tax credit, moved up to the current tax year and put into the tax reform code.
This is an important first step, but must once again be addressed in the legislature this session. In fact, work already is underway to re-introduce a fire tax credit package to include tuition credits at state-owned universities and community colleges and for employers of first responders.
These first responders are the backbone of the community and deserve something for their hard work and service.
The money situation trimmed this to a one-year tax credit this year. But even this was extremely important since it marked the first time there has ever been a tax credit for first responders.
This was precedent-setting and the Senate felt it vital to get the tax credit on the books, even if only for one year, and then with it in place, come back this session and get a permanent package in place.
Eligible volunteers must file a PA-40 Schedule OC-V form along with their 2008 State Personal Income Tax Return to the Pennsylvania Department of Revenue. The Department of Revenue posted the OC-V tax form on their Web site (www.revenue.state.pa.us) along with the other 2008 tax documents. The form can also be obtained by calling the Pennsylvania Department of Revenue at 1-800-363-2050.
The deadline is April 15, but with limited funding, qualified first responders should apply as soon as possible.
My deepest gratitude to all our first responders. Thank you.
State Sen. John C. Rafferty Jr. is a Republican who represents the 44th Senate District in Berks, Chester and Montgomery counties.
