HF741

Purpose

Establishes an income tax subtraction for volunteer fire and rescue workers. The goal is to recognize and support people who provide volunteer rescue services by reducing their taxable income.

Main Provisions

• A taxpayer who was a volunteer rescue worker may claim a subtraction of $10,000.
• A married taxpayer filing a joint return may claim a subtraction of $20,000 if both spouses were volunteer rescue workers.
• The subtraction applies to the individual income tax, by adding a new subdivision to Minnesota Statutes 2024 section 290.0132.

Key Definitions (What counts as qualified rescue work)

• fulltime basis: working in a given occupation for 1,600 hours or more during a calendar year.
• qualified rescue work includes any of the following during the taxable year:
  • volunteer firefighter (as defined in section 299N.03 subdivision 7)
  • ambulance service personnel (as defined in section 144E.001 subdivision 3a)
  • emergency medical responder (as defined in section 144E.001 subdivision 6)
  • member of a volunteer canine search and rescue team or volunteer underwater search and rescue team
• volunteer rescue worker: an individual who performed at least 40 hours of qualified rescue work during the taxable year on a volunteer, part-time, or paid-on-call basis, but not on a full-time basis.

Eligibility Details

• The 40-hour threshold for qualified rescue work must be met in the tax year to qualify for the subtraction.
• The fulltime basis threshold (1,600+ hours) distinguishes full-time workers from volunteers for purposes of definitions.

Significant Legal Change

• Creates a new subtraction in the Minnesota individual income tax code (Minnesota Statutes 2024 section 290.0132) specifically for volunteer rescue workers and sets clear definitions for who qualifies and how much they can subtract.

Practical Implications

• The measure provides a targeted tax benefit to individuals who volunteer in firefighting, emergency medical services, and related search-and-rescue roles.
• Couples where both spouses qualify can receive a larger subtraction if both performed qualifying volunteer rescue work.

Relevant Terms volunteer rescue worker; subtraction; Minnesota Statutes 2024 section 290.0132; subd. 36; volunteer firefighter; ambulance service personnel; emergency medical responder; volunteer canine search and rescue team; volunteer underwater search and rescue team; fulltime basis; 1,600 hours; qualified rescue work; 40 hours; volunteer part-time; paid-on-call; not full-time; married filing joint return; taxable year