HF 2418 (LSB 2628HV (3) 87)

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 volunteer fire fighters, concerning income tax deductions for volunteer fire fighters, making appropriations, and including effective date provisions.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 100B.2, Code 2018, is amended by adding the following new subsection:
   NEW SUBSECTION.  9.  Establish a length of service award program for volunteer fire fighters pursuant to the requirements of section 100B.41.
    Sec. 2.  NEW SECTION.  100B.41  Length of service award program.
   The state fire service and emergency response council, in consultation with the department of administrative services, shall establish a length of service award program for volunteer fire fighters as defined in section 85.61. The program shall provide length of service awards, as described in section 457(e)(11) of the Internal Revenue Code, to volunteer fire fighters of a fire department of a municipality, township, or benefited fire district that elects to participate in the program. The program shall be designed to treat awards from the program as a tax-deferred benefit under the Internal Revenue Code. The council shall develop and submit to the state fire marshal for adoption rules providing for minimum contribution requirements, eligibility requirements for participation by volunteer fire fighters, minimum vesting requirements, and such other rules as deemed necessary to operate the program.
    Sec. 3.  Section 422.12, subsection 1, paragraph f, Code 2018, is amended by striking the paragraph.
    Sec. 4.  Section 422.12, subsection 2, paragraph c, Code 2018, is amended to read as follows:
   c.  (1)  A volunteer fire fighter and volunteer emergency medical services personnel member credit equal to one hundred dollars to compensate the taxpayer for the voluntary services if the volunteer served for the entire tax year. A taxpayer who is a paid employee of an emergency medical services program or a fire department and who is also a volunteer emergency medical services personnel member or volunteer fire fighter in a city, county, or area governed by an agreement pursuant to chapter 28E where the emergency medical services program or fire department performs services, shall qualify for the credit provided under this paragraph “c”.
   (2)  If the taxpayer is not a volunteer fire fighter or volunteer emergency medical services personnel member for the entire tax year, the maximum amount of the credit shall be prorated and the amount of credit for the taxpayer 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 dollar. 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 member during the same month, a credit may be claimed for only one volunteer position for that month.
   (3)  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 member for the months for which the credit under this paragraph “c” is claimed.
    Sec. 5.  Section 422.12, subsection 2, paragraph d, subparagraph (3), Code 2018, is amended to read as follows:
   (3)  If the taxpayer is a reserve peace officer during the same month as the taxpayer is a volunteer fire fighter or volunteer emergency medical services personnel member, as defined in this section, a credit may be claimed for only one position for that month under either paragraph “c” or this paragraph “d”.
    Sec. 6.  EFFECTIVE DATE.  This Act, being deemed of immediate importance, takes effect upon enactment.
EXPLANATION
The inclusion of this explanation does not constitute agreement with
the explanation’s substance by the members of the general assembly.
   This bill requires the state fire service and emergency response council, in consultation with the department of administrative services, to establish a length of service award program for volunteer fire fighters. The program shall provide for a minimum contribution to the plan from a participating municipality, township, or benefited fire district, but participation in the plan by such an entity is optional. The council is also required to develop rules for adoption by the state fire marshal governing minimum contribution requirements, eligibility requirements for participation by volunteer fire fighters, and such other rules as deemed necessary to operate the program. 
   Code section 422.12, concerning deductions from income tax, is amended to eliminate the volunteer fire fighter tax credit equal to $100 to compensate the volunteer if the volunteer served for the entire tax year.
   The bill takes effect upon enactment.