Individual income tax: credit; qualified volunteers credit; create. Amends 1967 PA 281 (MCL 206.1 - 206.847) by adding sec. 281.
The implementation of HB4008 could significantly influence the recruitment and retention of volunteers within organized fire departments and life support agencies across Michigan. By providing a financial incentive, the legislation may encourage more individuals to participate in these crucial public safety roles. Additionally, this tax relief could help maintain a stable workforce of volunteers who often provide essential services to community safety and emergency response operations without pay.
House Bill 4008 proposes an amendment to the Income Tax Act of 1967, establishing a tax credit for skilled volunteers who serve as firefighters or emergency medical services personnel. Set to take effect for tax years beginning after January 1, 2025, the bill allows these volunteers to claim a $2,500 credit against their state tax liabilities. The credit aims to recognize the valuable contributions made by volunteers in public safety roles and alleviate some of their financial burdens associated with volunteering.
While the bill has garnered support from many stakeholders who argue that it acknowledges the commitment and sacrifice of volunteer firefighters and emergency medical personnel, there remains some contention. Critics may raise concerns about the potential fiscal impact on state revenue, as offering tax credits can lead to decreased income for the state. Further, debates around whether the provided credit adequately compensates for the ongoing costs faced by volunteers may lead to differing opinions among legislators and the community.