Senate File 447 - Introduced SENATE FILE 447 BY DICKEY A BILL FOR An Act relating to the individual income tax credits for fire 1 fighters, emergency medical services personnel members, and 2 reserve peace officers by increasing the amounts of the 3 credits, and including retroactive applicability provisions. 4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 5 TLSB 2445XS (9) 89 jm/jh

S.F. 447 Section 1. Section 422.12, subsection 1, paragraphs b and c, 1 Code 2021, are amended to read as follows: 2 b. “Emergency medical services personnel member” means an 3 emergency medical care provider, as defined in section 147A.1 , 4 who is certified as a first responder pursuant to chapter 147A , 5 and who receives an amount equal to or less than five thousand 6 dollars in annual compensation for performing emergency medical 7 services . 8 c. “Reserve peace officer” means a reserve peace officer 9 as defined in section 80D.1A who has met the minimum training 10 standards established by the Iowa law enforcement academy 11 pursuant to chapter 80D , and who receives an amount equal to 12 or less than five thousand dollars in annual compensation for 13 performing reserve peace officer services . 14 Sec. 2. Section 422.12, subsection 1, Code 2021, is amended 15 by adding the following new paragraph: 16 NEW PARAGRAPH . 0c. “Fire fighter” means an individual that 17 meets all of the following requirements: 18 (1) The individual is an active member of an organized 19 volunteer fire department in this state or is performing 20 services as a fire fighter for a municipality, township, or 21 benefited fire district at the request of the chief or other 22 person in command of the fire department of the municipality, 23 township, or benefited fire district, or of any other officer 24 of the municipality, township, or benefited fire district 25 having authority to demand such service. 26 (2) The individual receives annual compensation equal to 27 or less than five thousand dollars for performing fire fighter 28 services. 29 Sec. 3. Section 422.12, subsection 1, paragraph f, Code 30 2021, is amended by striking the paragraph. 31 Sec. 4. Section 422.12, subsection 2, paragraphs c and d, 32 Code 2021, are amended to read as follows: 33 c. (1) A volunteer fire fighter and volunteer emergency 34 medical services personnel member credit equal to one hundred 35 -1- LSB 2445XS (9) 89 jm/jh 1/ 4

S.F. 447 thousand dollars to compensate the taxpayer for the voluntary 1 services if the volunteer taxpayer served for the entire tax 2 year. A taxpayer who is a paid employee of an emergency 3 medical services program or a fire department and whose 4 compensation disqualifies the taxpayer for the credit but who 5 is also a volunteer an emergency medical services personnel 6 member or volunteer fire fighter in a city, county, or area 7 governed by an agreement pursuant to chapter 28E for another 8 governmental entity where the emergency medical services 9 program or fire department performs compensation for the 10 performance of such services , qualifies the taxpayer for 11 the credit shall qualify for the credit provided under this 12 paragraph “c” . 13 (2) If the taxpayer is not a volunteer fire fighter or 14 volunteer emergency medical services personnel member for 15 the entire tax year, the maximum amount of the credit shall 16 be prorated and the amount of credit for the taxpayer shall 17 equal the maximum amount of credit for the tax year, divided 18 by twelve, multiplied by the number of months in the tax year 19 the taxpayer was a volunteer fire fighter or emergency medical 20 services personnel member . The credit shall be rounded to the 21 nearest dollar. If the taxpayer is a volunteer fire fighter or 22 emergency medical services personnel member during any part of 23 a month, the taxpayer shall be considered a volunteer in such 24 position for the entire month. If the taxpayer is a volunteer 25 fire fighter and a volunteer an emergency medical services 26 personnel member during the same month, a credit may be claimed 27 for only one volunteer position for that month. 28 (3) The taxpayer is required to shall have a written 29 statement approval from the fire chief or other appropriate 30 supervisor verifying that the taxpayer was a volunteer fire 31 fighter or volunteer emergency medical services personnel 32 member for the months for which the credit prior to claiming 33 the credit under this paragraph “c” is claimed . The fire chief 34 or other appropriate supervisor may utilize the approval of 35 -2- LSB 2445XS (9) 89 jm/jh 2/ 4

S.F. 447 the tax credit to ensure a fire fighter or emergency medical 1 services personnel member meets training or other requirements 2 specified by the department or program. 3 d. (1) A reserve peace officer credit equal to one hundred 4 thousand dollars to compensate the taxpayer for services as a 5 reserve peace officer if the reserve peace officer served for 6 the entire tax year. 7 (2) If the taxpayer is not a reserve peace officer for 8 the entire tax year, the maximum amount of the credit shall 9 be prorated and the amount of credit for the taxpayer shall 10 equal the maximum amount of credit for the tax year, divided 11 by twelve, multiplied by the number of months in the tax year 12 the taxpayer was a reserve peace officer. The credit shall be 13 rounded to the nearest dollar. If the taxpayer is a reserve 14 peace officer any part of a month, the taxpayer shall be 15 considered a reserve peace officer for the entire month. 16 (3) If the taxpayer is a reserve peace officer , fire 17 fighter, or an emergency medical services personnel member 18 during the same month as the taxpayer is a volunteer fire 19 fighter or volunteer emergency medical services personnel 20 member, as defined in this section , a credit may be claimed for 21 only one position for that month under either paragraph “c” or 22 this paragraph “d” . 23 (4) The taxpayer is required to shall have a written 24 statement approval from the chief of police, sheriff, 25 commissioner of public safety, or other appropriate supervisor 26 verifying that the taxpayer was a reserve peace officer for the 27 months for which the credit prior to claiming the credit under 28 this paragraph “d” is claimed . The chief of police, sheriff, 29 commissioner of public safety, or other appropriate supervisor 30 may utilize the approval of the tax credit to ensure a reserve 31 peace officer meets training or other requirements specified 32 by the department. 33 Sec. 5. RETROACTIVE APPLICABILITY. This Act applies 34 retroactively to January 1, 2021, for tax years beginning on 35 -3- LSB 2445XS (9) 89 jm/jh 3/ 4

S.F. 447 or after that date. 1 EXPLANATION 2 The inclusion of this explanation does not constitute agreement with 3 the explanation’s substance by the members of the general assembly. 4 This bill relates to the individual income tax credits for 5 volunteer fire fighters, volunteer emergency medical services 6 personnel members, and reserve peace officers by increasing the 7 amounts of the credits, and including retroactive applicability 8 provisions. 9 The bill modifies the tax credit by allowing a fire fighter, 10 emergency medical services personnel member, or reserve 11 peace officer to qualify for the credit if such an individual 12 has annual compensation equal to or less than $5,000 in the 13 performance of services attributable to the position. 14 The bill increases from $100 to $1,000 the maximum amount 15 of the tax credit per individual for services performed during 16 the year. The tax credit increase applies retroactively to tax 17 years beginning on or after January 1, 2021. 18 The bill also modifies the tax credit by requiring a fire 19 fighter, emergency medical services personnel member, or 20 reserve peace officer to obtain written approval from their 21 supervisor prior to claiming the tax credit. The bill does 22 eliminate specific training requirements for a fire fighter 23 to be eligible for the tax credit, but the bill allows a 24 supervisor to utilize the approval of the tax credit to ensure 25 the individual meets training or other requirements specified 26 by the department or program. Currently, such an individual is 27 required to obtain a written statement from their supervisor 28 verifying the individual was in such a position for the months 29 the credit is claimed. 30 The bill also rearranges the definitional portion of Code 31 section 422.12, which is in alphabetical order, due to the 32 strike of the term “volunteer”. 33 -4- LSB 2445XS (9) 89 jm/jh 4/ 4