HOUSE BILL NO. 5432

A bill to amend 1967 PA 281, entitled

"Income tax act of 1967,"

(MCL 206.1 to 206.847) by adding section 280.

the people of the state of michigan enact:

Sec. 280. (1) For tax years that begin on and after January 1, 2024, a qualified volunteer may claim a credit against the tax imposed by this part equal to $2,500.00 for the qualified volunteer's services as a firefighter or emergency medical services personnel with an organized fire department or life support agency, whichever is applicable, during the tax year.

(2) A firefighter or emergency medical services personnel who is paid by an organized fire department or life support agency but also volunteers for another organized fire department or life support agency is eligible for the credit under this section for those volunteer services. To be eligible for the credit under this section, the qualified volunteer must submit with the annual return on which a credit under this section is claimed a signed written statement from the head of the organized fire department or life support agency for which the claimant volunteered during the tax year that affirms all of the following:

(a) The individual was an active member and served at least 10 hours of service a month as a volunteer with that department or agency.

(b) The individual is in compliance with all applicable training, policy, and procedure standards and requirements of that department or agency and this state.

(c) The individual was a volunteer and the only compensation for those services is reimbursement for reasonable expenses incurred in the performance of those services or reasonable benefits and fees for those services that are customarily paid by employers in connection with the performance of those volunteer services.

(3) If the credit allowed under this section exceeds the tax liability of the taxpayer for the tax year, that portion of the credit that exceeds the tax liability shall be refunded.

(4) As used in this section:

(a) "Emergency medical services personnel" means a medical first responder, emergency medical technician, emergency medical technician specialist, paramedic, or emergency medical services instructor-coordinator licensed under part 209 of the public health code, 1978 PA 368, MCL 333.20901 to 333.20979.

(b) "Firefighter" means a member of an organized fire department who is responsible for, or is in a capacity that includes responsibility for, the extinguishment of fires, the directing of the extinguishment of fires, the prevention and detection of fires, and the enforcement of the general fire laws of this state. Firefighter includes a driver, pump operator, and dispatcher.

(c) "Life support agency" means that term as defined in section 20906 of the public health code, 1978 PA 368, MCL 333.20906.

(d) "Organized fire department" means a department, an authority, or another governmental entity that safeguards life and property from damage from explosion, fire, or disaster and that provides fire suppression and other related services in this state. Organized fire department includes any lawfully organized firefighting force in this state.

(e) "Qualified volunteer" means a volunteer or paid on-call firefighter or volunteer or paid on-call emergency medical services personnel who has at least 120 hours of active service with an organized fire department or life support agency, whichever is applicable, during the tax year and whose only compensation for those services is reimbursement for reasonable expenses incurred in the performance of those services or reasonable benefits and fees for those services that are customarily paid by employers in connection with the performance of those volunteer services.