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[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[S. 1906 Introduced in Senate (IS)]

109th CONGRESS
  1st Session
                                S. 1906

  To amend the Internal Revenue Code of 1986 to exclude property tax 
 rebates and other benefits provided to volunteer firefighters, search 
and rescue personnel, and emergency medical responders from income and 
                 employment taxes and wage withholding.

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

                            October 21, 2005

  Mr. Dodd (for himself and Mr. Smith) introduced the following bill; 
     which was read twice and referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL

 
  To amend the Internal Revenue Code of 1986 to exclude property tax 
 rebates and other benefits provided to volunteer firefighters, search 
and rescue personnel, and emergency medical responders from income and 
                 employment taxes and wage withholding.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. EXCLUSION OF PROPERTY TAX REBATES AND OTHER BENEFITS 
              PROVIDED TO VOLUNTEER FIREFIGHTERS, SEARCH AND RESCUE 
              PERSONNEL, AND EMERGENCY MEDICAL RESPONDERS FROM INCOME 
              AND EMPLOYMENT TAXES AND WAGE WITHHOLDING.

    (a) Exclusion From Gross Income.--
            (1) In general.--Part III of subchapter B of chapter 1 of 
        the Internal Revenue Code of 1986 (relating to items 
        specifically excluded from gross income) is amended by 
        redesignating section 140 as section 140A and by inserting 
        after section 139 the following new section:

``SEC. 140. PROPERTY TAX REBATES AND OTHER BENEFITS PROVIDED TO 
              VOLUNTEER FIREFIGHTERS, SEARCH AND RESCUE PERSONNEL, AND 
              EMERGENCY MEDICAL RESPONDERS.

    ``(a) Exclusion.--Gross income shall not include a qualified 
property tax rebate or other benefit.
    ``(b) Qualified Property Tax Rebate or Other Benefit.--For purposes 
of subsection (a)--
            ``(1) In general.--The term `qualified property tax rebate 
        or other benefit' means a rebate of real or personal property 
        taxes, or any other benefit, provided by a State or political 
        subdivision on account of services performed as a member of a 
        qualified volunteer emergency response organization.
            ``(2) Qualified volunteer emergency response 
        organization.--The term `qualified volunteer emergency response 
        organization' means any volunteer organization--
                    ``(A) which is organized and operated to provide 
                firefighting, search and rescue, or emergency medical 
                services for persons in the State or political 
                subdivision, as the case may be, and
                    ``(B) which is required (by written agreement) by 
                the State or political subdivision to furnish 
                firefighting, search and rescue, or emergency medical 
                services in such State or political subdivision.''.
            (2) Clerical amendment.--The table of sections for such 
        part is amended by striking the last item and inserting the 
        following new items:

``Sec. 140. Property tax rebates and other benefits provided to 
                            volunteer firefighters, search and rescue 
                            personnel, and emergency medical 
                            responders.
``Sec. 140A. Cross references to other Acts.''.
    (b) Exclusion From Employment Taxes.--
            (1) Social security taxes.--
                    (A) Section 3121(a) of the Internal Revenue Code of 
                1986 (relating to definition of wages) is amended by 
                striking ``or'' at the end of paragraph (21), by 
                striking the period at the end of paragraph (22) and 
                inserting ``; or'', and by inserting after paragraph 
                (22) the following new paragraph:
            ``(23) any qualified property tax rebate or other benefit 
        (as defined in section 140(b)).''.
                    (B) Section 209(a) of the Social Security Act is 
                amended by striking ``or'' at the end of paragraph 
                (18), by striking the period at the end of paragraph 
                (19) and inserting ``; or'', and by inserting after 
                paragraph (19) the following new paragraph:
            ``(20) Any qualified property tax rebate or other benefit 
        (as defined in section 140(b) of the Internal Revenue Code of 
        1986).''.
            (2) Unemployment taxes.--Section 3306(b) of the Internal 
        Revenue Code of 1986 (relating to definition of wages) is 
        amended by striking ``or'' at the end of paragraph (18), by 
        striking the period at the end of paragraph (19) and inserting 
        ``; or'', and by inserting after paragraph (19) the following 
        new paragraph:
            ``(20) any qualified property tax rebate or other benefit 
        (as defined in section 140(b).''.
    (c) Wage Withholding.--Section 3401(a) of the Internal Revenue Code 
of 1986 (defining wages) is amended by striking ``or'' at the end of 
paragraph (21), by striking the period at the end of paragraph (22) and 
inserting ``; or'', and by inserting after paragraph (22) the following 
new paragraph:
            ``(23) for any qualified property tax rebate or other 
        benefit (as defined in section 140(b).''.
    (d) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after the date of the enactment of 
this Act.
                                 <all>
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