Bill Text: NJ A3832 | 2024-2025 | Regular Session | Introduced
Bill Title: Allows certain volunteer firefighters, rescue and first aid squad members to claim $5,000 income tax deduction.
Spectrum: Partisan Bill (Republican 3-0)
Status: (Introduced) 2024-02-22 - Introduced, Referred to Assembly Public Safety and Preparedness Committee [A3832 Detail]
Download: New_Jersey-2024-A3832-Introduced.html
Sponsored by:
Assemblyman AL BARLAS
District 40 (Bergen, Essex and Passaic)
Assemblyman CHRISTOPHER P. DEPHILLIPS
District 40 (Bergen, Essex and Passaic)
SYNOPSIS
Allows certain volunteer firefighters, rescue and first aid squad members to claim $5,000 income tax deduction.
CURRENT VERSION OF TEXT
As introduced.
An Act providing exemptions from gross income for certain members of volunteer fire companies, first aid squads and rescue squads and supplementing chapter 3 of Title 54A of the New Jersey Statutes.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. As used in this act:
a. "Duty hours" means the hours during which a member of a volunteer fire department or force or first aid or rescue squad has committed himself to respond to any alarm that may occur, whether or not an alarm actually occurs during those hours.
b. "10% of rescue duty" means (1) for volunteers without duty hours, the actual recorded attendance and rendering of first aid or other rescue service at not less than 10% of the regular alarms and 60% of the drills for first aid or rescue service answerable by volunteers during a calendar year, or (2) for volunteers with duty hours, at least 400 duty hours during any calendar year of which not more than 50% may be for drills.
c. "60% of fire duty" means (1) for volunteers without duty hours, the actual recorded attendance and rendering of fire service at not less than 60% of the regular alarms and 60% of the drills for fire service as responded to by the responding department or force during a calendar year, or (2) for volunteers with duty hours, at least 400 duty hours during any calendar year of which not more than 50% may be for drills.
d. "Volunteer" means a person who is a member of a volunteer fire company, first aid squad or rescue squad.
2. In addition to the exemptions allowed under N.J.S.54A:3-1, a taxpayer shall be allowed an additional exemption of $5,000 which may be taken as a deduction from the taxpayer's State gross income if the taxpayer served as a volunteer during the entire tax year for which the deduction is claimed and if:
a. The taxpayer performed 10% of rescue duty and had, by January 1 of the tax year, passed a training program approved by the New Jersey State First Aid Council or qualified as an emergency medical technician according to the standards established by the Department of Health and Senior Services; or
b. The taxpayer performed 60% of fire duty and had by January 1 of the tax year, attained the rank of Firefighter I Certified according to the standards established by the International Fire Service Training Association or equivalent standards approved by the Commissioner of Community Affairs.
3. a. An official in charge of a first aid or rescue squad shall no later than March 31 of each year file with the Department of Health and Senior Services a list of the members of the squad who qualify for an additional exemption for a preceding calendar year under this act and who meet the qualifications set forth in section 2 of this act.
b. An official in charge of a fire department or force shall no later than March 31 of each year file with the Department of Community Affairs a list of all the members of the department or force who qualify for an additional exemption for a preceding calendar year under this act and who meet qualifications set forth in section 2 of this act.
c. An official in charge of a fire department or force, or first aid or rescue squad who files a false list under subsection a. or b. of this section with the intent of aiding another person in the willful evasion of a tax or a lawful requirement under N.J.S.54A:1-1 et seq. shall be prosecuted under section 29 of P.L.1987, c.76 (C.54:52-19).
4. a. A taxpayer shall not be entitled to a deduction under this act of more than $5,000 in any one tax year. A taxpayer who is entitled to a deduction under this act shall submit a claim, accompanied by proof of the right to such a deduction, in a manner as the Director of the Division of Taxation may by regulation provide.
b. The Commissioner of Community Affairs and the Commissioner of Health and Senior Services shall make available to the director the files on volunteers which are collected under section 3 of this act so that the director may verify a claim for a deduction.
5. The Commissioner of Community Affairs shall adopt rules and regulations in accordance with the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.), in order to effectuate the provisions of this act.
6. This act shall take effect immediately and shall apply to tax years commencing after the December 31 next following enactment.
STATEMENT
This bill permits volunteer firefighters and first aid or rescue squad members to claim an additional exemption of $5,000 to be taken as a deduction from their gross income if they meet certain qualifications.
Under the bill, firefighters may claim the $5,000 deduction if they: 1) volunteered during the entire tax year; 2) performed 60% of fire duty; and 3) had, by January 1st of the tax year, attained the rank of Firefighter I Certified according to approved standards. To satisfy the "60% of fire duty" requirement, volunteer firefighters without duty hours must have responded to 60% of the regular alarms and drills in which the department or force participated and volunteer firefighters with duty hours must have at least 400 duty hours during a calendar year of which not more than 50% was for drills.
First aid or rescue squad members may claim the deduction if they: 1) volunteered during the entire tax year; 2) performed 10% of rescue duty; and 3) had, by January 1st of the tax year, either passed an approved training program or qualified as an emergency medical technician. To satisfy the "10% of rescue duty" requirement, first aid or rescue squad members who volunteer with duty hours must complete at least 400 hours of duty during the year, of which not more than 50% is for drills. If they volunteer without duty hours, the squad members must attend and render first aid at not less than 10% of the regular alarms and participate in 60% of the drills.
The bill defines duty hours as those during which volunteers committed themselves to respond to alarms.
The bill requires eligible volunteers to submit proof with their tax claim that they are entitled to the deduction. The Director of the Division of Taxation is responsible for establishing the manner of this proof.
An official of each fire department or force is responsible for providing a list of firefighters who are eligible for the deduction for the previous tax year to the Department of Community Affairs by March 31st. Similarly, an official of the rescue or first aid squad is responsible for providing a list of squad members who are eligible for the deduction for the previous tax year to the Department of Health and Senior Services by March 31st. The lists are to be made available to the Director of the Division of Taxation for verification purposes. An official who files a false list is subject to prosecution under section 29 of P.L.1987, c.76 (C.54:52-19), which makes it a crime of the fourth degree to knowingly certify a false statement with the intent to evade a tax. Fourth-degree crimes are punishable by a term of imprisonment of up to 18 months, a fine of up to $10,000, or both.
