HB2279, titled the No Tax on LOSAP Act, would amend the Internal Revenue Code to increase the federal income tax exclusion for certain qualified payments made to individuals who provide volunteer firefighting or emergency medical services. Under current law, the exclusion amount is $50; the bill would raise that amount to $1,000 for amounts awarded after enactment. The measure is aimed at making these volunteer-related payments less likely to be treated as taxable income.
The bill also clarifies that payments made under length of service award programs (LOSAPs) are included within the definition of qualified payments. LOSAPs are commonly used by local governments and fire districts to help recruit and retain volunteer firefighters and emergency medical responders by providing deferred benefits or awards tied to service. The bill would apply prospectively to amounts awarded after enactment.
Impact
If enacted, the bill would amend section 139B of the Internal Revenue Code of 1986 by increasing the federal tax exclusion for qualified volunteer firefighting and emergency medical service payments and by expressly including LOSAP payments in that exclusion. This would reduce taxable income for eligible volunteers receiving such awards and provide clearer federal tax treatment for state and local volunteer incentive programs. The bill would not directly change state law, but it could affect how state, local, and special district volunteer service award programs are structured and administered.
Sentiment
The available context suggests generally favorable bipartisan sentiment. The bill was introduced by a bipartisan group of House members and was referred to the House Committee on Ways and Means without recorded opposition or votes in the provided materials. Its framing as a tax relief measure for volunteer first responders indicates broad support for encouraging volunteer firefighting and emergency medical service participation.
Contention
The main policy issue is the scope of the tax exclusion and whether LOSAP payments should be explicitly covered. Supporters appear to favor a larger exclusion and clearer treatment of service awards to help recruit and retain volunteers. Potential concerns, though not documented in the provided transcripts, could include the federal revenue effect of expanding the exclusion and whether the tax benefit should be limited to specific types of awards or service programs. No formal opposition, amendments, or recorded vote details are included in the provided context.