H.R. 9308: Tax Relief for First Responder Beneficiaries Act

This bill would change federal tax rules for certain death benefits paid because of a public safety officer’s death. In plain terms, it would broaden who can receive tax relief when a police officer, firefighter, or other public safety officer dies in the line of duty or under related circumstances.

What the bill changes

• It renames one category in the tax code from “surviving dependents” to “surviving beneficiaries” for certain compensation excluded from income.
• It also expands a separate tax provision so that, in addition to a child of the officer, a beneficiary of any life insurance policy or benefit plan of the officer can qualify under the rule.

Practical effect

The main effect is that more people who receive money because a public safety officer died could treat that money more favorably for tax purposes. The bill is aimed at making sure that these tax benefits are not limited only to certain family members, but can also apply to other designated beneficiaries, such as someone named in a life insurance policy or benefit plan.

Who could be affected

• Surviving family members of public safety officers
• Other named beneficiaries of life insurance policies or benefit plans tied to a deceased public safety officer
• Agencies, retirement systems, or benefit plans that administer such payments, to the extent they need to follow the updated tax language

Timing

The bill says the changes would apply retroactively to taxable years beginning after December 31, 2022. That means the revised tax treatment would cover tax years starting in 2023 and later, even though the bill is being introduced in 2026.

Relevant Companies

None found