Bill Summary
The "No Tax on Length of Service Award Programs Act" aims to amend the Internal Revenue Code to provide tax relief for volunteer firefighters and emergency medical service providers. Specifically, the legislation increases the amount that can be excluded from gross income for qualified payments to these individuals from $50 to $1,000. Additionally, it clarifies that payments made under length of service award programs (LOSAP) are considered qualified payments. These changes will take effect for amounts awarded after the enactment of the Act, promoting support and recognition for the vital services provided by volunteers in emergency situations.
Possible Impacts
Here are three examples of how the proposed legislation, the "No Tax on Length of Service Award Programs Act," could affect people:
1. **Increased Financial Incentive for Volunteer Emergency Responders**: The legislation increases the amount that can be excluded from gross income for qualified payments to volunteer firefighters and emergency medical services from $50 to $1,000. This change could encourage more individuals to volunteer in these critical roles, as they would be able to receive a greater financial benefit without facing tax implications, making volunteering more appealing and accessible.
2. **Support for Length of Service Award Programs**: By clarifying that payments under length of service award programs are considered qualified payments, the legislation provides tax relief for communities that wish to incentivize and reward long-serving volunteers. This could lead to improved retention rates among volunteer emergency responders, as communities may implement or enhance these programs, knowing that the rewards can be offered without tax burdens on the recipients.
3. **Economic Benefits for Local Communities**: As more individuals participate in volunteer firefighting and emergency medical services due to the enhanced financial incentives, local communities may see improved emergency response capabilities. This can lead to better safety outcomes, potentially lower insurance premiums for residents, and an overall enhanced sense of community. Additionally, the increased funding for award programs might stimulate local economies if these awards are funded through local businesses or community initiatives.
[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2279 Introduced in House (IH)]
<DOC>
119th CONGRESS
1st Session
H. R. 2279
To amend the Internal Revenue Code of 1986 to increase the amount
excluded from gross income for qualified payments to individuals
providing volunteer firefighting or emergency medical services, and to
clarify that payments under length of service award programs are
qualified payments.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
March 21, 2025
Ms. Tenney (for herself, Mr. Lawler, Ms. Gillen, Mr. Suozzi, and Mr.
Garbarino) introduced the following bill; which was referred to the
Committee on Ways and Means
_______________________________________________________________________
A BILL
To amend the Internal Revenue Code of 1986 to increase the amount
excluded from gross income for qualified payments to individuals
providing volunteer firefighting or emergency medical services, and to
clarify that payments under length of service award programs are
qualified payments.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``No Tax on Length of Service Award
Programs Act'' or the ``No Tax on LOSAP Act''.
SEC. 2. QUALIFIED PAYMENT EXCLUSION AMOUNT INCREASED.
(a) In General.--Section 139B(c)(2)(B) of the Internal Revenue Code
of 1986 is amended by striking ``$50'' and inserting ``$1,000''.
(b) Effective Date.--The amendment made by this section shall apply
to amounts awarded after the date of the enactment of this Act.
SEC. 3. CLARIFICATION THAT LENGTH OF SERVICE AWARDS ARE INCLUDED IN THE
QUALIFIED PAYMENT DEFINITION.
(a) Clarification.--Section 139B(c)(2)(A) of such Code is amended
by inserting ``, and including payments under any length of service
award program'' after ```(whether reimbursement or otherwise'''.
(b) Effective Date.--The amendment made by this section shall apply
to amounts awarded after the date of the enactment of this Act.
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