Congress raises tax break for volunteer firefighters from $50 to $1,000
H.R. 2279 — No Tax on LOSAP Act · Filed by Claudia Tenney (R-NY) · 6 cosponsors · Introduced Mar 21, 2025 · Referred to committee
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What it does
This bill increases the federal tax exclusion for volunteer firefighters and emergency medical personnel from $50 to $1,000 per year and explicitly clarifies that payments under length-of-service award programs (LOSAP) qualify for this tax break. Volunteer firefighters and EMTs who receive service awards or stipends will owe no federal income tax on up to $1,000 annually instead of $50.
Why we flagged it
The bill's sole operative mechanism is a tax-code amendment that increases the annual exclusion for volunteer firefighter and EMT compensation from $50 to $1,000 and clarifies LOSAP eligibility. It is straightforward tax relief targeted at a specific public-service constituency.
What the text implies
- The $1,000 cap applies per individual per year; a volunteer receiving multiple awards or stipends from different jurisdictions may face stacking questions, though the bill text does not address this.
- The clarification of LOSAP inclusion may resolve prior IRS guidance ambiguity, potentially triggering retroactive claims or amended returns for prior-year awards—implementation guidance from Treasury will be critical.
The full analysis lists 3 implications of this text.
Who it affects
Volunteer firefighters and emergency medical personnel—who provide critical public safety services without full-time compensation—receive a modest but meaningful increase in tax-free income recognition. The $1,000 annual exclusion (up from $50) acknowledges their service and reduces their tax burden; the clarification removes ambiguity that may have discouraged participation or created compliance confusion.