Income tax; authorize a credit for taxpayers who serve as volunteer firefighters.
The bill is expected to impact state tax laws by adding a new section to the Mississippi Code that specifically provides an incentive for volunteer firefighters. This could encourage more individuals to consider volunteering in fire departments, especially in rural areas where such services are essential but often understaffed. Additionally, the financial benefit may help alleviate some of the financial burdens that potential volunteers face, aiding in recruitment and retention for local fire services.
House Bill 295, known as the Volunteer Firefighter Income Tax Credit Act, introduces a refundable income tax credit for taxpayers who actively serve as volunteer firefighters. Under this proposed legislation, eligible taxpayers can claim a tax credit of $500 for the taxable year in which they performed their duties as volunteer firefighters. This measure aims to acknowledge the contributions of these volunteers to local communities and provide them with financial relief on their state income taxes. If the tax credit exceeds the income tax owed, taxpayers will receive a refund for the excess amount from the Mississippi Department of Revenue.
While the bill broadly garners support for its intent to support volunteer firefighters, there may be discussions regarding the potential budgetary implications and the overall effectiveness of tax credits as a recruitment tool for volunteer services. Lawmakers will need to consider whether this approach aligns with broader fiscal policies and how it may affect state revenues. Moreover, stakeholders might raise questions about the verification process for eligibility, which involves documentation and oversight by county fire coordinators.