Michigan lawmakers propose $2500 tax credit for volunteer firefighters and EMS personnel

On January 9, 2025, Michigan lawmakers introduced House Bill No. 4008, aimed at providing financial relief to volunteer firefighters and emergency medical services personnel. This proposed legislation seeks to amend the Income Tax Act of 1967 by adding a new section that would allow qualified volunteers to claim a tax credit of $2,500 for their services rendered during the tax year.

The bill, sponsored by Representatives Steve Wendzel and Darrin Wozniak, addresses a pressing issue: the growing need for volunteer emergency responders in Michigan. As communities face increasing demands for fire and medical services, the bill aims to incentivize volunteerism in these critical roles. By offering a tax credit, the legislation hopes to acknowledge the dedication of those who serve without compensation, thereby encouraging more individuals to participate in volunteer firefighting and emergency medical services.

To qualify for the credit, volunteers must provide documentation confirming their active status and a minimum of 10 hours of service per month with an organized fire department or life support agency. Notably, the bill also extends eligibility to those who are paid by one agency but volunteer with another, broadening the scope of support for emergency services.

The introduction of House Bill No. 4008 has sparked discussions among lawmakers and community leaders about its potential impact. Proponents argue that the financial incentive could significantly boost volunteer recruitment and retention, addressing staffing shortages that many fire departments and emergency services face. However, some critics express concerns about the bill's fiscal implications, questioning how the state will manage the potential loss of tax revenue while ensuring adequate funding for essential services.

As the bill moves to the Committee on Finance for further deliberation, its future remains uncertain. Stakeholders are closely monitoring the discussions, as the outcome could have lasting effects on volunteer emergency services across Michigan. If passed, House Bill No. 4008 could serve as a model for other states grappling with similar challenges in maintaining robust volunteer emergency response teams.