S. 625 – Reading Mode | Legislate.dev

109th CONGRESS

1st Session

S. 625

IN THE SENATE OF THE UNITED STATES

March 15, 2005

Mr. Schumer introduced the following bill; which was read twice and referred to the Committee on Finance

A BILL

To amend the Internal Revenue Code of 1986 to allow a $1,000 refundable credit for individuals who are bona fide volunteer members of volunteer firefighting and emergency medical service organizations.

Short title

This Act may be cited as the Supporting Emergency Responders Volunteer Efforts Act of 2005 or the SERVE Act of 2005.

Refundable credit for bona fide volunteer members of volunteer firefighting and emergency medical service organizations

(a)

In general

Subpart C of part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986 (relating to refundable credits) is amended by redesignating section 36 as section 37 and by inserting after section 35 the following new section:

36.

Bona fide volunteer members of volunteer firefighting and emergency medical service organizations

(a)

In general

In the case of an individual who at any time during the taxable year is a bona fide volunteer member of a qualified volunteer fire department, there shall be allowed as a credit against the tax imposed by this subtitle the amount of $1,000.

(b)

Part-Year active members

In the case of an individual who is a bona fide volunteer member of a qualified volunteer fire department for only a portion of a taxable year, the amount of the credit under subsection (a) for such taxable year shall be an amount which bears the same ratio to $1,000 as such portion bears to the entire taxable year.

(c)

Definitions

For purposes of this section—

(1)

Bona fide volunteer member of a qualified volunteer fire department

(A)

In general

An individual shall be treated as a bona fide volunteer of a qualified volunteer fire department for purposes of this section if—

(i)

the only compensation received by such individual for performing qualified services is in the form of—

(I)

reimbursement for (or a reasonable allowance for) reasonable expenses incurred in the performance of such services, or

(II)

reasonable benefits (including length of service awards), and nominal fees for such services, customarily paid by eligible employers in connection with the performance of such services by volunteers, and

(ii)

the aggregate amount of such compensation for the taxable year for providing qualified services does not exceed an amount equal to the annual limitation.

(B)

Annual limitation

For purposes of subparagraph (A), the annual limitation is an amount equal to the product of—

(i)

the minimum wage in effect under section 6(a)(1) of the Fair Labor Standards Act of 1938 (29 U.S.C. 206(a)(1)) on the first day of the calendar year beginning in the taxable year, multiplied by

(ii)

2,080 hours.

(2)

Qualified services

For purposes of this paragraph, the term qualified services means fire fighting and prevention services, emergency medical services, and ambulance services.

(3)

Qualified volunteer fire department

The term qualified volunteer fire department has the meaning given such term by section 150(e).

(b)

Conforming amendments

(1)

Paragraph (2) of section 1324(b) of title 31, United States Code, is amended by inserting or 36 after section 35.

(2)

The table of sections for subpart C of part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986 is amended by redesignating the item relating to section 36 as an item relating to section 37 and by inserting before the item relating to section 37 the following new item:

Sec. 36. Bona fide volunteer members of volunteer firefighting and emergency medical service organizations.

(c)

Effective date

The amendments made by this section shall apply to taxable years beginning after the date of the enactment of this Act.