SENATE FILE 4

BY  HANCOCK

A BILL FOR

An Act providing volunteer fire fighters and emergency medical services personnel with an individual income tax credit and including effective date and applicability provisions.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

   Section 1.  Section 422.12, Code 2011, is amended by adding the following new subsection:
   NEW SUBSECTION.  2A.
  a.  A volunteer fire fighter and volunteer emergency medical services personnel credit equal to the amount specified in paragraph“b” to compensate the taxpayer for the voluntary services.
   b.  The amount of the credit is equal to the following:
   (1)  For tax years beginning in the 2012 calendar year, twenty-five dollars.
   (2)  For tax years beginning in the 2013 calendar year, fifty dollars.
   (3)  For tax years beginning in the 2014 calendar year, seventy-five dollars.
   (4)  For tax years beginning in the 2015 and subsequent calendar years, one hundred dollars.
   c.  If the taxpayer is not a volunteer fire fighter or volunteer emergency medical services personnel for the entire tax year, the amount of the dollar credit shall be prorated and the amount of credit shall equal the maximum amount of credit for the tax year, divided by twelve, multiplied by the number of months in the tax year the taxpayer was a volunteer. The credit shall be rounded to the nearest five dollars. If the taxpayer is a volunteer during any part of a month, the taxpayer shall be considered a volunteer for the entire month. If the taxpayer is a volunteer fire fighter and a volunteer emergency medical services personnel during the same month, a credit may be claimed for only one volunteer position for that month.
   d.  The taxpayer is required to have a written statement from the fire chief or other appropriate supervisor verifying that the taxpayer was a volunteer fire fighter or volunteer emergency medical services personnel for the months for which the credit under this subsection is claimed.
   e.  For purposes of this subsection:
   (1)  “Emergency medical services personnel” means an emergency medical care provider, as defined in section 147A.1, who is certified as a first responder pursuant to chapter 147A.
   (2)  “Volunteer fire fighter” means a volunteer fire fighter as defined in section 85.61 who has met the minimum training standards established by the fire service training bureau pursuant to chapter 100B.
   Sec. 2.  EFFECTIVE DATE AND APPLICABILITY.  This Act takes effect January 1, 2012, for tax years beginning on or after that date.
EXPLANATION
   This bill provides a nonrefundable individual income tax credit for an individual who was a volunteer fire fighter who has met the minimum training standards or certified volunteer emergency medical services personnel for the entire tax year. The credit is to compensate the individual for the volunteer services. The amount of the credit equals $25 for the 2012 tax year and increases by $25 for each subsequent tax year until the credit equals $100. If the individual was not a volunteer for the entire tax year, the amount of credit is prorated based upon the months of volunteer service. A credit may be claimed for only one volunteer position per month.
   The bill takes effect January 1, 2012, for tax years beginning on or after that date.