To amend the Internal Revenue Code of 1986 to exclude from gross income health care subsidy payments made to employers by local governments on behalf of volunteer firefighters.

October 28, 2003

Mr. ANDREWS introduced the following bill; which was referred to the Committee on Ways and Means

To amend the Internal Revenue Code of 1986 to exclude from gross income health care subsidy payments made to employers by local governments on behalf of volunteer firefighters.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

This Act may be cited as the `Volunteer Firefighters' Protection Act of 2003'.

SEC. 2. EXCLUSION OF HEALTH CARE SUBSIDY PAYMENTS MADE ON BEHALF OF VOLUNTEER FIREFIGHTERS.

(a) GENERAL RULE- Part III of subchapter B of chapter 1 of the Internal Revenue Code of 1986 (relating to items specifically excluded from gross income) is amended by inserting after section 139 the following new section:

`SEC. 139A. HEALTH CARE SUBSIDY PAYMENTS MADE ON BEHALF OF VOLUNTEER FIREFIGHTERS.

`(a) GENERAL RULE- In the case of an employer, gross income does not include amounts received in a taxable year as a qualified health care subsidy payment.

`(b) QUALIFIED HEALTH CARE SUBSIDY PAYMENT- For purposes of subsection (a), the term `qualified health care subsidy payment' means a payment which--

`(1) is made by a political subdivision of a State to the taxpayer under a qualified volunteer firefighter agreement, and

`(2) does not exceed the aggregate of the applicable premiums (within the meaning of section 4980B(f)(4)) for insurance which constitutes medical care (as defined in section 213(d)) for the employees of such taxpayer who are qualified volunteer firefighters, their spouses, and dependents.

`(c) QUALIFIED VOLUNTEER FIREFIGHTER AGREEMENT- The term `qualified volunteer firefighter agreement' means an agreement entered into between the taxpayer and a political subdivision of a State under which--

`(1) the taxpayer allows the employees who are qualified volunteer firefighters to be on call while at work for the taxpayer for such hours as the taxpayer and employees may agree, and

`(2) the taxpayer agrees not to demote or fire any such employee as a result of work missed under such agreement.

`(d) QUALIFIED VOLUNTEER FIREFIGHTER- For purposes of this section, the term `qualified volunteer firefighter' means an individual who, at all times during the taxable year, is a member in good standing of a qualified volunteer fire department (as defined in section 150(e)).'.

(b) CLERICAL AMENDMENT- The table of sections for such part is amended by inserting after the item relating to section 139 the following new item:

`139A. Health care subsidy payments made on behalf of volunteer firefighters.'.

(c) EFFECTIVE DATE- The amendments made by this section shall apply to taxable years beginning after the date of the enactment of this Act.

END