Michigan House Bill HB4431

Michigan 2025-2026 Regular Session

• Introduced: 5/6/25
• Refer: 5/6/25

Caption

Individual income tax: credit; qualified volunteers credit; create. Amends 1967 PA 281 (MCL 206.1 - 206.847) by adding sec. 281.

Impact

The introduction of this tax credit is expected to provide financial relief to volunteer firefighters, who typically do not receive a salary for their service. As defined in the bill, eligible volunteers must have completed a minimum of 10 hours of volunteer service per month with an organized fire department. This legislation could potentially encourage more individuals to join local firefighting services, addressing staffing shortages in various communities, especially in rural areas where volunteer participation is crucial.

Summary

House Bill 4431 proposes an amendment to the Income Tax Act of 1967, specifically by adding a new section that allows qualified volunteers who serve as firefighters to claim a tax credit of $2,500 against their state income tax. This credit is intended for tax years beginning on or after January 1, 2025, thereby incentivizing volunteer firefighters to contribute their services to organized fire departments within Michigan. The bill aims to recognize the commitment and role of volunteers in maintaining public safety and firefighting efforts.

Contention

While the bill promotes support for volunteer firefighters, there may be discussions regarding the fiscal impact on the state's budget due to the implementation of the tax credit. Critics might argue that such tax incentives could lead to revenue losses for the state, while supporters contend that investing in volunteer services can yield long-term savings by bolstering community safety and preparedness. The requirement for firefighters to submit evidence of their service also raises questions about the administrative burden on local fire departments to maintain accurate records for verification.

Notable_points

Overall, House Bill 4431 reflects a growing acknowledgment of the valuable role that volunteer firefighters play in state and local emergency services. It highlights a commitment to enhance support for these individuals while ensuring public safety continues to be prioritized. As the legislative process unfolds, stakeholders will likely weigh the benefits of increased volunteer participation against potential budgetary implications associated with providing tax credits.