[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[S. 3012 Introduced in Senate (IS)]







107th CONGRESS
  2d Session
                                S. 3012

 To amend the Internal Revenue Code of 1986 to exclude from income and 
 employment taxes and wage withholding property tax rebates and other 
   benefits provided to volunteer firefighters and emergency medical 
                              responders.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                           September 26, 2002

   Mr. Dodd introduced the following bill; which was read twice and 
                  referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL


 
 To amend the Internal Revenue Code of 1986 to exclude from income and 
 employment taxes and wage withholding property tax rebates and other 
   benefits provided to volunteer firefighters and emergency medical 
                              responders.

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

SECTION 1. EXCLUSION FROM INCOME AND EMPLOYMENT TAXES AND WAGE 
              WITHHOLDING FOR PROPERTY TAX REBATES AND OTHER BENEFITS 
              PROVIDED TO VOLUNTEER FIREFIGHTERS AND EMERGENCY MEDICAL 
              RESPONDERS.

    (a) Exclusion From Gross Income.--
            (1) In general.--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 
        redesignating section 140 as section 140A and by inserting 
        after section 139 the following new section:

``SEC. 140. PROPERTY TAX REBATES AND OTHER BENEFITS PROVIDED TO 
              VOLUNTEER FIREFIGHTERS AND EMERGENCY MEDICAL RESPONDERS.

    ``(a) Exclusion.--Gross income shall not include a qualified 
property tax rebate or other benefit.
    ``(b) Qualified Property Tax Rebate or Other Benefit.--For purposes 
of subsection (a)--
            ``(1) In general.--The term `qualified property tax rebate 
        or other benefit' means a rebate of real or personal property 
        taxes, or any other benefit, provided by a State or political 
        subdivision on account of services performed as a member of a 
        qualified volunteer emergency response organization.
            ``(2) Qualified volunteer emergency response 
        organization.--The term `qualified volunteer emergency response 
        organization' means any volunteer organization--
                    ``(A) which is organized and operated to provide 
                firefighting or emergency medical services for persons 
                in the State or political subdivision, as the case may 
                be, and
                    ``(B) which is required (by written agreement) by 
                the State or political subdivision to furnish 
                firefighting or emergency medical services in such 
                State or political subdivision.''.
            (2) Clerical amendment.--The table of sections for such 
        part is amended by striking the last item and inserting the 
        following new items:

                              ``Sec. 140. Property tax rebates and 
                                        other benefits provided to 
                                        volunteer firefighters and 
                                        emergency medical responders.
                              ``Sec. 140A. Cross references to other 
                                        Acts.''.
    (b) Exclusion From Employment Taxes.--
            (1) Social security taxes.--
                    (A) Section 3121(a) of such Code (relating to 
                definition of wages) is amended by striking ``or'' at 
                the end of paragraph (20), by striking the period at 
                the end of paragraph (21) and inserting ``; or'', and 
                by inserting after paragraph (21) the following new 
                paragraph:
            ``(22) any qualified property tax rebate or other benefit 
        (as defined in section 140(b)).''.
                    (B) Section 209(a) of the Social Security Act is 
                amended by striking ``or'' at the end of paragraph 
                (17), by striking the period at the end of paragraph 
                (18) and inserting ``; or'', and by inserting after 
                paragraph (18) the following new paragraph:
            ``(19) Any qualified property tax rebate or other benefit 
        (as defined in section 140(b) of the Internal Revenue Code of 
        1986).''.
            (2) Unemployment taxes.--Section 3306(b) of such Code 
        (relating to definition of wages) is amended by striking ``or'' 
        at the end of paragraph (16), by striking the period at the end 
        of paragraph (17) and inserting ``; or'', and by inserting 
        after paragraph (17) the following new paragraph:
            ``(18) any qualified property tax rebate or other benefit 
        (as defined in section 140(b).''.
            (3) Wage withholding.--Section 3401(a) of such Code 
        (defining wages) is amended by striking ``or'' at the end of 
        paragraph (20), by striking the period at the end of paragraph 
        (21) and inserting ``; or'', and by inserting after paragraph 
        (21) the following new paragraph:
            ``(22) for any qualified property tax rebate or other 
        benefit (as defined in section 140(b).''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after the date of the enactment of 
this Act.
                                 <all>