TRENTON, NJ – Legislation sponsored by Senator Carmen F. Amato Jr. to provide tax relief for volunteer first responders has advanced from the Senate Budget and Appropriations Committee with bipartisan support.
The bill, S-788, would exempt stipends and clothing allowances paid to volunteer firefighters and emergency medical personnel from state income, temporary disability, and family leave insurance taxes.
Senator Amato said the measure ensures volunteers who protect their communities are not penalized by taxes on the modest stipends they receive for service.
Key Points
- Senate committee advances Senator Amato’s bill exempting stipends for volunteer first responders from taxes.
- The proposal aims to improve recruitment and retention of volunteer EMS and fire personnel.
- Assembly members Brian Rumpf and Gregory Myhre will co-sponsor the Assembly companion bill, A-1429.
Bill designed to boost volunteer recruitment
“The men and women who volunteer as EMS and firefighters give their time and often risk their safety to protect our communities,” Amato said. “This bill ensures that individuals who step up to serve their community aren’t penalized by unnecessary taxes on the stipends they receive.”
The proposal responds to growing recruitment challenges among volunteer emergency service agencies across New Jersey. Municipalities have increasingly turned to small stipends to attract and retain personnel, but those payments are currently subject to income and payroll taxes.
Exemptions apply to unemployment and disability funds
Under the bill, services performed by a volunteer first responder receiving a stipend below the federal compensation threshold would be exempt from coverage under unemployment insurance, temporary disability, and family leave programs. As a result, volunteers would not pay related payroll taxes and would not be eligible for those benefits for their volunteer service.
The measure also excludes stipends from calculation of gross income under state law, meaning volunteers would not owe state income tax on payments received from municipalities for their emergency service work.
Bipartisan backing in effort to strengthen local emergency response
Amato’s legislation builds on ongoing state efforts to bolster local emergency response capacity and support volunteer-based departments. The bill defines “volunteer first responder” as any unpaid firefighter or member of an incorporated first aid, ambulance, or rescue squad dispatched to emergencies to provide care or assistance.
Assemblymen Brian E. Rumpf and Gregory E. Myhre, both Republicans representing the 9th Legislative District alongside Amato, intend to sponsor the Assembly version of the measure, A-1429.
The Senate Labor Committee previously reported the bill favorably, and it now heads to the full Senate for consideration.