I 111th CONGRESS 1st Session H. R. 2601 IN THE HOUSE OF REPRESENTATIVES May 21, 2009 Mr. Hinchey (for himself, Mr. Adler of New Jersey, Mr. Altmire, Mr. Andrews, Mr. Bishop of New York, Mr. Gallegly, Mr. Kildee, Mrs. Lowey, Mr. Massa, Mr. McGovern, Mr. Nye, Mr. Rodriguez, and Ms. Shea-Porter) introduced the following bill; which was referred to the Committee on Ways and Means A BILL To amend the Internal Revenue Code of 1986 to allow a $1,000 refundable credit for individuals who are bona fide volunteer members of volunteer firefighting and emergency medical service organizations.

1.

Short title

This Act may be cited as the Supporting Emergency Responders Volunteer Efforts Act of 2009 or the SERVE Act of 2009.

2.

Refundable credit for bona fide volunteer members of volunteer emergency response organizations

(a)

In general

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 inserting after section 36A the following new section:

36B.

Bona fide volunteer members of volunteer emergency response organizations

(a)

In general

In the case of an individual who at any time during the taxable year is a bona fide volunteer member of a qualified volunteer emergency response organization, there shall be allowed as a credit against the tax imposed by this subtitle the amount of $1,000. (b)

Definitions

For purposes of this section— (1)

Bona fide volunteer member of a qualified volunteer emergency response organization

(A)

In general

An individual shall be treated as a bona fide volunteer of a qualified volunteer emergency response organization 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)

Annual limitation

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. (C)

Service limitation

An individual shall be treated as a bona fide volunteer described in subparagraph (A) for a taxable year only if such individual has served as a volunteer performing qualified services for more than 6 months in such taxable year and provided more than 40 hours of such service. (D)

Training and certification requirements

An individual shall not be treated as a bona fide volunteer described in subparagraph (A) for any period for which the individual fails to meet all applicable training and certification requirements of the qualified volunteer emergency response organization for which such individual volunteers. (E)

Coordination with exclusion

Amounts excluded from gross income under section 139B shall not be taken into account for purposes of subparagraph (A). (2)

Qualified services

For purposes of this paragraph, the term qualified services means fire fighting and prevention services, emergency medical services, and ambulance services. (3)

Qualified volunteer emergency response organization

The term qualified volunteer emergency response organization has the meaning given such term by section 139B(c)(3).

. (b)

Conforming amendments

(1)Paragraph (2) of section 1324(b) of title 31, United States Code, is amended by inserting 36B, after section 36A,. (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 inserting after the item relating to section 36A the following new item: Sec. 36B. Bona fide volunteer members of volunteer emergency response organizations. . (c)

Effective date

The amendments made by this section shall apply to taxable years beginning after the date of the enactment of this Act.