The bill amends Section 40-18-481 of the Code of Alabama 1975 to expand and make permanent the income tax credit for qualified volunteer firefighters and rescue squad members who complete certain approved training each year. The proposed changes include the introduction of new tax credit amounts based on the level of certification and training completed. For tax years beginning on January 1, 2023, and ending December 31, 2026, certified volunteer firefighters or licensed EMT-Basics will receive a $300 tax credit, while those certified as Firefighter II or licensed Advanced EMTs or EMT-Paramedics will receive a $600 credit. Starting in 2027, the tax credits will adjust to $400 for Firefighter I or licensed EMT-Basics and $200 for Emergency Medical Responders or Rescue Squad First Responders.

Additionally, the bill includes several insertions and deletions to clarify the requirements for claiming the tax credit. It mandates that qualifying individuals submit proof of at least 30 hours of training each year and outlines the necessary documentation, including a standardized certificate signed by both the taxpayer and a certifying supervisor. The Department of Revenue is tasked with providing this certificate format and requiring taxpayers to submit it along with their educational certificates or licenses. The failure to provide the required documentation will result in the automatic denial of the tax credit. The act is set to take effect on June 1, 2026.

Statutes affected:
Introduced: 40-18-481, 40-18-481
Engrossed: 40-18-481, 40-18-481