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.
Summary
Bill A05782 proposes an amendment to the New York tax law that would exclude service awards paid to volunteer firefighters and volunteer ambulance workers from federal adjusted gross income. This exclusion aims to treat these awards similarly to pensions, thereby exempting them from state income tax. The bill seeks to recognize the contributions of these volunteers by providing them with a financial benefit that acknowledges their service to the community.
Impact
If enacted, this bill would result in a change to the tax obligations of volunteer firefighters and ambulance workers in New York. By excluding service awards from taxable income, the bill would effectively reduce the overall tax burden on these individuals. This could encourage more individuals to volunteer in these critical roles, potentially enhancing community emergency services. Additionally, it would align New York's treatment of these awards with that of pensions, creating a more favorable tax environment for volunteers.
Sentiment
The sentiment surrounding Bill A05782 appears to be positive, with discussions highlighting the importance of supporting volunteer emergency responders. There is a general agreement among proponents that the bill is a necessary step in recognizing the sacrifices made by these individuals. However, the lack of recorded votes or committee discussions suggests that it may not have been a contentious issue, or it may still be in the early stages of consideration.
Contention
While there are no significant points of contention reported in the discussions or voting history, potential concerns could arise regarding the fiscal implications of the tax exemption. Opponents may argue about the impact on state revenue or the fairness of providing tax benefits to certain groups over others. However, no specific dissenting voices have been documented in the current context.
An Act Allowing A Personal Income Tax Deduction For Stipends Paid To Volunteer Firefighters, Volunteer Fire Police Officers And Volunteer Ambulance Members.