House File 2073

                                       HOUSE FILE       
                                       BY  LUKAN


    Passed House,  Date               Passed Senate, Date             
    Vote:  Ayes        Nays           Vote:  Ayes        Nays         
                 Approved                            

                                      A BILL FOR

  1 An Act providing an individual income tax credit for volunteer
  2    fire fighters and emergency medical services personnel and
  3    providing effective and retroactive applicability dates.
  4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
  5 TLSB 5583YH 80
  6 mg/gg/14

PAG LIN

  1  1    Section 1.  Section 422.12, Code 2003, is amended by adding
  1  2 the following new subsection:
  1  3    NEW SUBSECTION.  2A.  a.  A volunteer fire fighter and
  1  4 volunteer emergency medical services personnel credit equal to
  1  5 the amount specified in paragraph "b" to compensate the
  1  6 taxpayer for the voluntary services.
  1  7    b.  The amount of the credit is equal to the following:
  1  8    (1)  For the tax year beginning in the 2004 calendar year,
  1  9 fifty dollars.
  1 10    (2)  For the tax year beginning in the 2005 calendar year,
  1 11 one hundred dollars.
  1 12    (3)  For the tax year beginning in the 2006 calendar year,
  1 13 one hundred fifty dollars.
  1 14    (4)  For the tax year beginning in the 2007 calendar year,
  1 15 two hundred dollars.
  1 16    (5)  For the tax years beginning in the 2008 and subsequent
  1 17 calendar years, two hundred fifty dollars.
  1 18    However, if the taxpayer is not a volunteer fire fighter or
  1 19 volunteer emergency medical services personnel for the entire
  1 20 tax year, the amount of the dollar credit shall be prorated
  1 21 and the amount of credit shall equal the maximum amount of
  1 22 credit for the tax year, divided by twelve, multiplied by the
  1 23 number of months in the tax year the taxpayer was a volunteer.
  1 24 The credit shall be rounded to the nearest five dollars.  If
  1 25 the taxpayer is a volunteer during any part of a month, the
  1 26 taxpayer shall be considered a volunteer for the entire month.
  1 27 If the taxpayer is a volunteer fire fighter and a volunteer
  1 28 emergency medical services personnel during the same month, a
  1 29 credit may be claimed for only one volunteer position for that
  1 30 month.
  1 31    c.  The taxpayer is required to have a written statement
  1 32 from the fire chief or other appropriate supervisor verifying
  1 33 that the taxpayer was a volunteer fire fighter or volunteer
  1 34 emergency medical services personnel for the months for which
  1 35 the credit under this subsection is claimed.
  2  1    d.  For purposes of this subsection:
  2  2    (1)  "Emergency medical services personnel" means an
  2  3 emergency medical care provider, as defined in section 147A.1,
  2  4 who is certified as a first responder pursuant to chapter
  2  5 147A.
  2  6    (2)  "Volunteer fire fighter" means a volunteer fire
  2  7 fighter as defined in section 85.61, who is certified as a
  2  8 first responder pursuant to chapter 147A.
  2  9    Sec. 2.  EFFECTIVE AND APPLICABILITY DATES.  This Act,
  2 10 being deemed of immediate importance, takes effect upon
  2 11 enactment and applies retroactively to January 1, 2004, for
  2 12 tax years beginning on or after that date.
  2 13                           EXPLANATION
  2 14    This bill provides an individual income tax credit for an
  2 15 individual who was a volunteer fire fighter or volunteer
  2 16 emergency services personnel for the entire tax year.  The
  2 17 credit is to compensate the individual for the volunteer
  2 18 services.  The amount of the credit starts at $50 for the 2004
  2 19 tax year and increases by $50 a year until the credit reaches
  2 20 a maximum of $250 for the 2008 and subsequent tax years.  If
  2 21 the individual was not a volunteer for the entire tax year,
  2 22 the amount of credit is prorated based upon the months of
  2 23 volunteer service.  A credit may be claimed for only one
  2 24 volunteer position per month.
  2 25    The bill takes effect upon enactment and applies
  2 26 retroactively to January 1, 2004, for tax years beginning on
  2 27 or after that date.
  2 28 LSB 5583YH 80
  2 29 mg/gg/14