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Iowa bill gives firefighters a tax break

Copyright 2006 The Omaha World-Herald Company

The legislation would exempt stipends received by volunteers from state taxes.


By ELIZABETH AHLIN
Omaha World-Herald (Nebraska)

GLENWOOD, Iowa — Volunteer firefighters who receive some money for their services could be in line for a tax break this year.

A bill in the Iowa Legislature would exempt from state income taxes the first $15,000 that volunteer firefighters receive for performing their duties.

“It provides some flexibility for our volunteers to make sure they aren’t paying taxes on stipends designed to offset the cost of volunteering,” said State Rep. Doug Struyk, R-Council Bluffs, who introduced the bill.

Struyk estimated that the state would lose less than $100,000 in tax revenues under the bill.

The vast majority of volunteer firefighters would gain no benefit from the bill.

Scott Hagenson, president of the Iowa Firemen’s Association, estimated that of the more than 850 volunteer departments in the state, fewer than 250 pay a stipend or otherwise compensate their volunteers.

Some departments cover expenses when volunteers respond to a fire, some pay a small fee for fighting the fire, and some reimburse for training and equipment.

Bryan Hakenson of Glenwood, a 21-year firefighter, has never been paid for his work.

Hakenson said it is not unusual for firefighters to drive themselves to the scene or use their own vehicles to move equipment.

It’s expensive, he said, but for the Glenwood volunteers, it’s just part of the job.

That job has gotten harder in recent years for volunteer fire departments across Iowa. Dwindling rosters and increased training requirements have forced volunteers to give more time to fire departments.

“It’s not just the pager goes off, and you report to a fire,” said Hakenson, who said mandatory training and meetings eat up most of his free time. “Our families think we live down here.”

For years, the Iowa Firemen’s Association has lobbied to get tax credits in an effort to recruit and retain volunteers.

Last year, Rep. Steven Lukan introduced a bill that would give volunteers a $500 tax credit for one year of service.

Lukan is a volunteer firefighter in New Vienna, his hometown. The Iowa Firemen’s Association strongly supports his bill.

“It would be a nice thank-you to those who are currently volunteering,” said Hagenson, the association president.

The bill has bipartisan sponsorship, but Lukan said other budget demands could trump rewarding volunteer firefighters.

“We don’t volunteer to get rich. We do it because we want to help the community,” said Hakenson in Glenwood.

“But let’s face it, tax breaks would help.”