LEGISLATIVE FISCAL ESTIMATE
ASSEMBLY, No. 3532
STATE OF NEW JERSEY
221st LEGISLATURE
DATED: SEPTEMBER 10, 2024
SUMMARY
Synopsis: Provides gross income tax credit to active members of volunteer
emergency service organizations for use of personal motor vehicle in
the performance of active duty.
Type of Impact: Annual loss of State revenue to the Property Tax Relief Fund.
Agencies Affected: Department of the Treasury.
Fiscal Impact FY 2026 and Each FY Thereafter
Annual State Revenue Loss Approximately $11 million
 The Office of Legislative Services (OLS) estimates that this bill will reduce revenues dedicated
to the Property Tax Relief Fund by approximately $11 million annually beginning in FY 2026.
 For the purposes of this analysis, the OLS assumes that approximately 66 percent of active
volunteers will claim the tax credit and that these persons will drive an average of 10 miles per
week in the performance of their duties. Based on these assumptions, the OLS estimates that
approximately 47,000 active volunteers would receive an average tax credit of $350 per year.
BILL DESCRIPTION
This bill establishes a refundable gross income tax credit to provide reimbursement to active
members of volunteer fire departments and first aid squads for the use of their personal vehicles
in the performance of active duty. The credit amount is determined by multiplying the Internal
Revenue Services’ standard business mileage rate by the number of miles the taxpayer traveled
using their personal vehicle for active duty in the tax year. The maximum credit is $500 per
individual taxpayer or $1,000 for married individuals filing jointly if both spouses qualify.
To be eligible, the taxpayer must have been an unpaid member in good standing of the
volunteer organization and completed “qualifying service” during the tax year. Qualifying service
is defined based on participation thresholds for alarms and calls, meetings, training, and other
duties.
Office of Legislative Services Legislative Budget and Finance Office
State House Annex Phone (609) 847-3105
P.O. Box 068 Fax (609) 777-2442
Trenton, New Jersey 08625 www.njleg.state.nj.us
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FISCAL ANALYSIS
EXECUTIVE BRANCH
None received.
OFFICE OF LEGISLATIVE SERVICES
The OLS estimates that this bill will reduce annual State revenues dedicated to the Property
Tax Relief Fund by roughly $11 million attributable to the provision of tax credits to members of
volunteer fire departments and first aid squads for the use of their personal vehicles in the
performance of active duty.
The Division of Fire Safety in the Department of Community Affairs reported in June 2023
that there were 35,289 active firefighters in New Jersey. Of these, 7,877 were career firefighters
while 27,412 were volunteers who would qualify for the tax credit provided under the bill. In
addition, the Department of Health reports that there are 26,000 Emergency Medical Technicians
in the State. Assuming that 75 percent of these technicians are volunteers, the OLS estimates that
about 47,000 individuals in total would qualify for the new tax credit.
The OLS notes that information concerning the actual number of miles driven by volunteer
firefighters and first aid squad members in the performance of active duty is not publicly available.
However, assuming that two-thirds of eligible firefighters and first aid squad members are able to
claim the credit, and assuming that these persons drive an average of 10 miles per week in the
performance of active duty, equating to an average credit amount of nearly $350 when reimbursed
at the current standard mileage rate of $0.67, the OLS estimates that the bill would result in annual
State revenue losses of roughly $11 million.
Section: Revenue, Finance, and Appropriations
Analyst: Patrick Walsh
Assistant Fiscal Analyst
Approved: Thomas Koenig
Legislative Budget and Finance Officer
This legislative fiscal estimate has been produced by the Office of Legislative Services due to the
failure of the Executive Branch to respond to our request for a fiscal note.
This fiscal estimate has been prepared pursuant to P.L.1980, c.67 (C.52:13B-6 et seq.).