LEGISLATIVE FISCAL OFFICE
Fiscal Note
Fiscal Note On: HB 616 HLS 21RS 22
Bill Text Version: ORIGINAL
Opp. Chamb. Action:
Proposed Amd.:
Sub. Bill For.:
Date: April 23, 2021 10:11 AM Author: JOHNSON, MIKE
Dept./Agy.: Revenue
Subject: Income Tax Credit for Volunteer Firefighters Analyst: Patrice Thomas
TAX CREDITS OR -$1,102,954 GF RV See Note Page 1 of 1
Establishes an individual income tax credit for volunteer firefighters
Present law authorizes a $500 income tax deduction for individuals who volunteer for volunteer fire departments, if the
individual completes 24 hours of continuing education annually and the individual is an active member of the LA State
Fireman's Association or on the departmental personnel roster for the State Fire Marshal's Volunteer Fireman's Insurance
Program. Proposed law repeals the annual tax deduction and replaces it with an annual $500 income tax credit. Proposed
law requires the individual claiming the credit be a Louisiana taxpayer. Proposed law provides that tax credit is refundable.
Proposed law is effective with taxable years beginning on or after 1/01/2022.
EXPENDITURES 2021-22 2022-23 2023-24 2024-25 2025-26 5 -YEAR TOTAL
State Gen. Fd. $0 $0 $0 $0 $0 $0
Agy. Self-Gen. $0 $0 $0 $0 $0 $0
Ded./Other $0 $0 $0 $0 $0 $0
Federal Funds $0 $0 $0 $0 $0 $0
Local Funds $0 $0 $0 $0 $0 $0
Annual Total $0 $0 $0 $0 $0 $0
REVENUES 2021-22 2022-23 2023-24 2024-25 2025-26 5 -YEAR TOTAL
State Gen. Fd. $0 ($1,102,954) ($1,102,954) ($1,102,954) ($1,102,954) ($4,411,816)
Agy. Self-Gen. $0 $0 $0 $0 $0 $0
Ded./Other $0 $0 $0 $0 $0 $0
Federal Funds $0 $0 $0 $0 $0 $0
Local Funds $0 $0 $0 $0 $0 $0
Annual Total $0 ($1,102,954) ($1,102,954) ($1,102,954) ($1,102,954) ($4,411,816)
EXPENDITURE EXPLANATION
Proposed law will result in the Louisiana Department of Revenue (LDR) incurring one-time SGF costs related to
programming, testing and system development along with associated changes to software. LDR estimates total costs for the
enumerated items at approximately $25,680 of staff time for computer system modification, testing, and tax form redesign.
REVENUE EXPLANATION
Proposed law will decrease SGF revenue by $1.1 M beginning in FY 23 as a result of a $500 refundable volunteer firefighter
tax credit. Under present law, volunteer firefighters who are active members of the LA State Fireman's Association or are on
the personnel roster for the State Fire Marshal's Volunteer Fireman's Insurance Program and annually complete 24 hours of
continuing education are eligible for a $500 income tax deduction. The proposed law repeals the $500 income tax deduction
in the present law and replaces it with an annual $500 income tax credit, which is refundable.
The Department of Revenue reports 2,315 taxpayers qualified for the $500 volunteer firefighter tax deduction from income
claimed in FY 19, which equated to a revenue loss of $54,546. If those same taxpayers claimed the $500 volunteer
firefighter tax credit, the anticipated revenue loss would be $1,102,954 (2,315 x $500 tax credit = $1,157,500 - $54,546
existing tax deduction). Since the credit is being made refundable by this bill, it is likely that nearly all of the estimated
credit exposure would be realized against state general fund.
However, according to the Office of State Fire Marshal, there are approximately 8,500 volunteer firefighters in Louisiana. In
the event all 8,500 volunteer firefighters meet the requirements to claim the tax credit, the anticipated state general fund
revenue loss would be $4.25 M annually (8,500 x $500 tax credit).
Senate Dual Referral Rules House
13.5.1 >= $100,000 Annual Fiscal Cost {S & H} 6.8(F)(1) >= $100,000 SGF Fiscal Cost {H & S}
Gregory V. Albrecht
x 13.5.2 >= $500,000 Annual Tax or Fee 6.8(G) >= $500,000 Tax or Fee Increase
Change {S & H} Chief Economist
or a Net Fee Decrease {S}


Statutes affected:
HB616 Original: 47:293(7), 47:1621(A), 47:1621(B)