HB1241
To Create A Refundable Tax Credit For Certain Volunteer Firefighters.
Last Action (May 1, 2023): Died in House Committee at Sine Die Adjournment
Sponsors
AI-Generated Summary
House Bill 1241 creates a new refundable state income tax credit of $500 for qualified volunteer firefighters in Arkansas. To qualify, individuals must engage in fire suppression or rescue activities, receive less than $5,000 in annual compensation from their department, and complete specific training courses through the Arkansas Fire Training Academy and the Arkansas State Forestry Commission. The bill requires applicants to submit proof of this training and obtain signed approval from their fire chief, board of commissioners, or mayor. The credit is refundable, meaning if it exceeds a taxpayer's liability, the remaining amount is paid out to the taxpayer. The legislation applies to tax years beginning on or after January 1, 2023.
Potential Impact Analysis
Who Might Benefit?
The primary beneficiaries are qualified volunteer firefighters in Arkansas who meet the specified training and compensation requirements. These individuals receive direct financial relief through the $500 tax credit. Additionally, volunteer fire departments may benefit as the incentive could help with the recruitment and retention of personnel.
Who Might Suffer?
The primary entity negatively impacted is the State of Arkansas, specifically the general revenue fund, which will experience a reduction in tax collections due to the refundable credit. There are no other groups significantly negatively impacted by this legislation.
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