A newly introduced bill in New Jersey would establish a refundable gross income tax credit to volunteer firefighters or volunteer first aid squad members, including Hatzolah members, who use their personal vehicles while responding to emergencies.

The amount of the credit would be determined by multiplying the business standard mileage rate set by the Internal Revenue Service for transportation or travel expenses by the number of miles the taxpayer actually and necessarily traveled by the taxpayer in the tax year when using their vehicle for the purpose of responding to a call.

The maximum amount of the credit would be $500. If married individuals filing a joint return both qualify, they would be allowed a joint credit of up to $1,000.

To be eligible for the credit, a taxpayer would, in the taxable year for which the credit was claimed, have to: (1) have been an unpaid member in good standing of the organization; and (2) have completed “qualifying service” with the organization.

The bill, which is sponsored by Senator Vin Gopal (D-Monmouth), defines “qualifying service” as:

(a) for a volunteer who does not have duty hours, active participation in at least 60 percent of the regular alarms or other calls to active duty to which the organization responds during the taxable year, recorded attendance at not less than 60 percent of the organization’s mandatory meetings during the year, participation in all of the organization’s mandatory meetings during the year, and performance during the year of not less than 60 percent of any other miscellaneous duty required by the organization; or

(b) for a volunteer who does have duty hours, performance of at least 400 duty hours during the year, of which no more than 50 percent could be for drills or other training classes or exercises.

The bill has been referred to Senate Law and Public Safety Committee where it awaits a hearing.

A related bill which proposed a constitutional amendment in New Jersey to authorize municipalities to provide a property tax credit to volunteer firefighters or volunteer first aid squad members, including Hatzolah members, of up to 100% for their primary residence, failed to pass during the previous legislative session.