Allows certain volunteer firefighters, rescue and first aid squad members to claim $5,000 income tax deduction.

A117

ASSEMBLY, No. 117

STATE OF NEW JERSEY

222nd LEGISLATURE

�

PRE-FILED FOR INTRODUCTION IN THE 2026 SESSION

Sponsored by:

Assemblyman AL BARLAS

District 40 (Bergen, Essex and Passaic)

Assemblyman CHRISTOPHER P. DEPHILLIPS

District 40 (Bergen, Essex and Passaic)

Co-Sponsored by:

Assemblyman McGuckin

SYNOPSIS

���� Allows certain volunteer firefighters, rescue and
first aid squad members to claim $5,000 income tax deduction.

CURRENT VERSION OF TEXT

���� Introduced Pending Technical Review by Legislative
Counsel.

��

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.