1.
This Act may be cited as the
Supporting Emergency Responders
Volunteer Efforts Act of 2005
or the SERVE Act of 2005
.
2.
Refundable credit for bona fide volunteer members of volunteer
firefighting and emergency medical service organizations
(a)
Subpart C of part IV of subchapter A of chapter 1 of the Internal
Revenue Code of 1986 (relating to refundable credits) is amended by
redesignating section 36 as section 37 and by inserting after section 35 the
following new section:
36.
Bona fide volunteer members of volunteer firefighting and
emergency medical service organizations
(a)
In the case of an individual who at any time during the taxable
year is a bona fide volunteer member of a qualified volunteer fire department,
there shall be allowed as a credit against the tax imposed by this subtitle the
amount of $1,000.
(b)
In the case of an individual who is a bona fide volunteer
member of a qualified volunteer fire department for only a portion of a taxable
year, the amount of the credit under subsection (a) for such taxable year shall
be an amount which bears the same ratio to $1,000 as such portion bears to the
entire taxable year.
(c)
For purposes of this section—
(1)
Bona fide volunteer member of a qualified volunteer fire
department
(A)
An individual shall be treated as a bona fide volunteer of a
qualified volunteer fire department for purposes of this section if—
(i)
the only compensation received by such individual for
performing qualified services is in the form of—
(I)
reimbursement for (or a reasonable allowance for) reasonable
expenses incurred in the performance of such services, or
(II)
reasonable benefits (including length of service awards), and
nominal fees for such services, customarily paid by eligible employers in
connection with the performance of such services by volunteers, and
(ii)
the aggregate amount of such compensation for the taxable year
for providing qualified services does not exceed an amount equal to the annual
limitation.
(B)
For purposes of subparagraph (A), the annual limitation is an
amount equal to the product of—
(i)
the minimum wage in effect under section 6(a)(1) of the Fair
Labor Standards Act of 1938 (29 U.S.C. 206(a)(1)) on the
first day of the calendar year beginning in the taxable year, multiplied
by
(ii)
2,080 hours.
(2)
For purposes of this paragraph, the term qualified
services means fire fighting and prevention services, emergency medical
services, and ambulance services.
(3)
Qualified volunteer fire department
The term qualified volunteer fire department has
the meaning given such term by section 150(e).
.
(b)
(1)
Paragraph (2) of section 1324(b) of title 31, United States Code,
is amended by inserting or 36
after section
35
.
(2)
The table of sections for subpart C of part IV of subchapter A of
chapter 1 of the Internal Revenue Code of 1986 is amended by redesignating the
item relating to section 36 as an item relating to section 37 and by inserting
before the item relating to section 37 the following new item:
Sec. 36. Bona fide volunteer members of
volunteer firefighting and emergency medical service
organizations.
.
(c)The amendments made by this section shall apply to taxable
years beginning after the date of the enactment of this Act.