House File 2418 - Introduced HOUSE FILE 2418 BY COMMITTEE ON PUBLIC SAFETY (SUCCESSOR TO HSB 165) A BILL FOR An Act establishing a length of service award program for 1 volunteer fire fighters, concerning income tax deductions 2 for volunteer fire fighters, making appropriations, and 3 including effective date provisions. 4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 5 TLSB 2628HV (3) 87 ec/rj

H.F. 2418 Section 1. Section 100B.2, Code 2018, is amended by adding 1 the following new subsection: 2 NEW SUBSECTION . 9. Establish a length of service 3 award program for volunteer fire fighters pursuant to the 4 requirements of section 100B.41. 5 Sec. 2. NEW SECTION . 100B.41 Length of service award 6 program. 7 The state fire service and emergency response council, in 8 consultation with the department of administrative services, 9 shall establish a length of service award program for volunteer 10 fire fighters as defined in section 85.61. The program shall 11 provide length of service awards, as described in section 12 457(e)(11) of the Internal Revenue Code, to volunteer fire 13 fighters of a fire department of a municipality, township, 14 or benefited fire district that elects to participate in the 15 program. The program shall be designed to treat awards from 16 the program as a tax-deferred benefit under the Internal 17 Revenue Code. The council shall develop and submit to the 18 state fire marshal for adoption rules providing for minimum 19 contribution requirements, eligibility requirements for 20 participation by volunteer fire fighters, minimum vesting 21 requirements, and such other rules as deemed necessary to 22 operate the program. 23 Sec. 3. Section 422.12, subsection 1, paragraph f, Code 24 2018, is amended by striking the paragraph. 25 Sec. 4. Section 422.12, subsection 2, paragraph c, Code 26 2018, is amended to read as follows: 27 c. (1) A volunteer fire fighter and volunteer emergency 28 medical services personnel member credit equal to one hundred 29 dollars to compensate the taxpayer for the voluntary services 30 if the volunteer served for the entire tax year. A taxpayer 31 who is a paid employee of an emergency medical services program 32 or a fire department and who is also a volunteer emergency 33 medical services personnel member or volunteer fire fighter in 34 a city, county, or area governed by an agreement pursuant to 35 -1- LSB 2628HV (3) 87 ec/rj 1/ 3

H.F. 2418 chapter 28E where the emergency medical services program or 1 fire department performs services, shall qualify for the credit 2 provided under this paragraph “c” . 3 (2) If the taxpayer is not a volunteer fire fighter or 4 volunteer emergency medical services personnel member for 5 the entire tax year, the maximum amount of the credit shall 6 be prorated and the amount of credit for the taxpayer shall 7 equal the maximum amount of credit for the tax year, divided by 8 twelve, multiplied by the number of months in the tax year the 9 taxpayer was a volunteer. The credit shall be rounded to the 10 nearest dollar. If the taxpayer is a volunteer during any part 11 of a month, the taxpayer shall be considered a volunteer for 12 the entire month. If the taxpayer is a volunteer fire fighter 13 and a volunteer emergency medical services personnel member 14 during the same month, a credit may be claimed for only one 15 volunteer position for that month. 16 (3) The taxpayer is required to have a written statement 17 from the fire chief or other appropriate supervisor verifying 18 that the taxpayer was a volunteer fire fighter or volunteer 19 emergency medical services personnel member for the months for 20 which the credit under this paragraph “c” is claimed. 21 Sec. 5. Section 422.12, subsection 2, paragraph d, 22 subparagraph (3), Code 2018, is amended to read as follows: 23 (3) If the taxpayer is a reserve peace officer during 24 the same month as the taxpayer is a volunteer fire fighter 25 or volunteer emergency medical services personnel member, as 26 defined in this section , a credit may be claimed for only one 27 position for that month under either paragraph “c” or this 28 paragraph “d” . 29 Sec. 6. EFFECTIVE DATE. This Act, being deemed of immediate 30 importance, takes effect upon enactment. 31 EXPLANATION 32 The inclusion of this explanation does not constitute agreement with 33 the explanation’s substance by the members of the general assembly. 34 This bill requires the state fire service and emergency 35 -2- LSB 2628HV (3) 87 ec/rj 2/ 3

H.F. 2418 response council, in consultation with the department of 1 administrative services, to establish a length of service award 2 program for volunteer fire fighters. The program shall provide 3 for a minimum contribution to the plan from a participating 4 municipality, township, or benefited fire district, but 5 participation in the plan by such an entity is optional. The 6 council is also required to develop rules for adoption by the 7 state fire marshal governing minimum contribution requirements, 8 eligibility requirements for participation by volunteer fire 9 fighters, and such other rules as deemed necessary to operate 10 the program. 11 Code section 422.12, concerning deductions from income tax, 12 is amended to eliminate the volunteer fire fighter tax credit 13 equal to $100 to compensate the volunteer if the volunteer 14 served for the entire tax year. 15 The bill takes effect upon enactment. 16 -3- LSB 2628HV (3) 87 ec/rj 3/ 3