A new legislative bill, HB1386, introduced in the Illinois House of Representatives on January 15, 2025, aims to incentivize volunteer emergency service work through tax credits. The bill proposes that taxpayers who serve as volunteer emergency workers with county or municipal emergency services must complete at least 100 hours of service during the taxable year to qualify for these credits.

Key provisions of HB1386 include a cap on the total amount of tax credits awarded, set at $5 million for the years 2023, 2024, and 2025, and increasing to $6 million for 2026 and beyond. The credits will be distributed on a first-come, first-served basis, ensuring that those who meet the requirements are rewarded promptly. However, the bill stipulates that the credits cannot reduce a taxpayer's liability to less than zero.

The legislation also outlines the responsibilities of the Office of the State Fire Marshal, which must provide the Department of Revenue with a list of eligible volunteer emergency workers by January 24 each year. To qualify, volunteers must have served for at least nine months in the previous year and earned no more than $5,000 in compensation.

Supporters of HB1386 argue that it will bolster volunteer emergency services, which are crucial for community safety, especially in times of disaster. They believe that the financial incentive will encourage more individuals to participate in these essential roles. However, some critics express concerns about the potential strain on state resources, given the capped funding for tax credits.

The implications of HB1386 extend beyond financial incentives; it reflects a growing recognition of the importance of volunteer emergency services in Illinois. As communities face increasing challenges from natural disasters and emergencies, the bill could play a significant role in enhancing local response capabilities.

As the legislative process continues, stakeholders will be watching closely to see how this bill evolves and what impact it may have on volunteerism and emergency preparedness in the state.