H.R. 2279: No Tax on Length of Service Award Programs Act

This bill, named the No Tax on Length of Service Award Programs Act, aims to modify certain provisions of the Internal Revenue Code related to volunteer firefighting and emergency medical services. Its primary objectives are to:

Increase Exclusion Amount for Qualified Payments

The bill proposes to increase the maximum amount that can be excluded from gross income for qualified payments made to individuals for their volunteer work in firefighting or emergency medical services. The current limit of $50 will be raised to $1,000. This change will allow volunteers to receive larger financial awards without having to pay taxes on those amounts.

Include Length of Service Awards in Qualified Payments

Additionally, the bill clarifies that payments made under length of service award programs (LOSAP) will also be considered as qualified payments. This means that such payments, whether they serve as reimbursement or compensation, will be eligible for the increased exclusion from gross income specified in the previous point.

Effective Date

The changes made by this bill would apply to amounts awarded after the bill is enacted. Thus, any payments made under these provisions will follow the new regulations starting from the date of the law's enactment.

Summary of Benefits

• Enhances financial recognition for volunteer emergency service providers.
• Reduces tax burdens for qualified payments received by these volunteers.
• Encourages continued volunteer service through enhanced award programs.

Relevant Companies

• None found