Excludes certain training stipends for volunteer firefighters from state income tax.
Impact
If enacted, A07969 would have a direct financial impact on state tax revenues, as the exclusion of these stipends from taxable income could lower the overall tax contributions from volunteer firefighters. This might be viewed favorably by the supporters of the bill who believe that it could encourage more individuals to volunteer in fire services, thereby enhancing emergency response capabilities within communities. By alleviating some of the financial pressure on volunteer firefighters, the bill aims to support the retention and recruitment of personnel in an area that often faces challenges related to staffing and funding.
Summary
Assembly Bill A07969 proposes to amend New York's tax law to exclude certain training stipends received by volunteer firefighters from being considered taxable income. Specifically, the bill aims to make stipends received under section 200-aa of the general municipal law exempt from state income taxation, thereby reducing the tax burden on these individuals. This initiative acknowledges the vital role that volunteer firefighters play in local communities and seeks to provide financial incentives for their training and service.
Contention
While the bill may appear beneficial to volunteer firefighters, it may also raise concerns among tax policy advocates regarding potential revenue losses for the state. Critics might argue that tax exemptions could set a precedent for other groups seeking similar treatment, thus complicating the tax structure and impacting state funding for essential services. Furthermore, discussions around the bill could involve questions about the fairness of offering specific groups tax benefits while others do not receive similar treatment. This could ignite a debate on equity in tax law adjustments and the prioritization of public service support.
Excludes from federal adjusted gross income the amount of any service award paid to a volunteer firefighter or volunteer ambulance worker, thereby exempting such payments from state income tax in like manner as a pension.
Allows volunteer firefighters to attend training required under 19 NYCRR 426 without being penalized by their employer; creates tax incentives for employing volunteer firefighters.
Provides a state income tax exemption for volunteer firefighters and volunteer ambulance workers who have qualifying service in the taxable year for which such exemption is sought.