Huge Tax Break Proposed for Hudson Valley Firefighters

Volunteer firefighters across the Hudson Valley may soon get a much bigger financial reward for the countless hours they spend protecting their communities.

New legislation approved by the New York State Senate would dramatically increase the state income tax credit available to volunteer firefighters and volunteer ambulance workers. If signed into law by Governor Kathy Hochul, the measure would raise the credit from $200 to $800 for eligible individuals and from $400 to $1,600 for married couples filing jointly.

The proposal comes at a time when volunteer fire departments throughout the Hudson Valley and across New York continue to struggle with recruiting and retaining members. According to state lawmakers and fire service organizations, New York has lost roughly 20,000 volunteer firefighters over the past two decades.

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A Bigger Incentive for Hudson Valley Volunteers

For many volunteer firefighters, the tax credit won't make anyone rich. But supporters say it sends an important message that the state recognizes the sacrifices made by volunteers who are forced to abandon family dinners, holiday celebrations and even their jobs when emergency calls come in.

The legislation is particularly significant because it would also allow volunteers to receive both the state income tax credit and an existing property tax exemption. Under current law, many volunteers must choose one benefit or the other.

Supporters hope the enhanced benefits will encourage more residents to join local departments and help keep experienced firefighters from leaving the service.

Other Tax Benefits Already Available

Many New Yorkers may not realize that volunteer firefighters already qualify for several financial incentives.

State law allows municipalities and school districts to offer a partial property tax exemption for qualified volunteer firefighters and ambulance workers. The exemption can reduce the taxable assessed value of a primary residence, lowering annual property tax bills for eligible volunteers.

Some local governments have also adopted additional incentives aimed at recruitment and retention, including length-of-service award programs that function similarly to retirement benefits.

New York has also created a volunteer firefighter stipend program that allows certain fire districts to provide annual payments to volunteers who meet service requirements. The program was approved by state lawmakers as another tool to help local departments compete for volunteers.