The proposed bill seeks to support volunteer first responders by exempting them from unemployment compensation law coverage and excluding stipends received for their volunteer services from gross income for tax purposes. Specifically, it introduces a new legal definition for "volunteer first responder," which encompasses volunteer firefighters and emergency service members. The bill amends R.S.43:21-19 to clarify that these individuals will not be subject to unemployment insurance taxes or eligible for unemployment benefits for their volunteer work. Additionally, stipends, including clothing allowances provided by municipalities, will not be included in their gross income.

By alleviating the financial burden associated with these stipends, the bill aims to encourage municipalities to recruit and retain volunteer emergency personnel, ultimately enhancing the availability of emergency services to residents. The provisions of the bill will take effect immediately, with the income tax exemption applying to taxable years beginning after January 1 of the year following its enactment.