II 

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. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 
2 

•S 1906 IS

1 SECTION 1. EXCLUSION OF PROPERTY TAX REBATES AND 

2 OTHER BENEFITS PROVIDED TO VOLUNTEER 

3 FIREFIGHTERS, SEARCH AND RESCUE PER4 SONNEL, AND EMERGENCY MEDICAL RE5 SPONDERS FROM INCOME AND EMPLOYMENT 

6 TAXES AND WAGE WITHHOLDING. 

7 (a) EXCLUSION FROM GROSS INCOME.— 

8 (1) IN GENERAL.—Part III of subchapter B of 

9 chapter 1 of the Internal Revenue Code of 1986 (re10 lating to items specifically excluded from gross in11 come) is amended by redesignating section 140 as 

12 section 140A and by inserting after section 139 the 

13 following new section: 

14 ‘‘SEC. 140. PROPERTY TAX REBATES AND OTHER BENEFITS 

15 PROVIDED TO VOLUNTEER FIREFIGHTERS, 

16 SEARCH AND RESCUE PERSONNEL, AND 

17 EMERGENCY MEDICAL RESPONDERS. 

18 ‘‘(a) EXCLUSION.—Gross income shall not include a 

19 qualified property tax rebate or other benefit. 

20 ‘‘(b) QUALIFIED PROPERTY TAX REBATE OR OTHER

21 BENEFIT.—For purposes of subsection (a)— 

22 ‘‘(1) IN GENERAL.—The term ‘qualified prop23 erty tax rebate or other benefit’ means a rebate of 

24 real or personal property taxes, or any other benefit, 

25 provided by a State or political subdivision on ac-
3 

•S 1906 IS

1 count of services performed as a member of a quali2 fied volunteer emergency response organization. 

3 ‘‘(2) QUALIFIED VOLUNTEER EMERGENCY RE4 SPONSE ORGANIZATION.—The term ‘qualified volun5 teer emergency response organization’ means any 

6 volunteer organization— 

7 ‘‘(A) which is organized and operated to 

8 provide firefighting, search and rescue, or emer9 gency medical services for persons in the State 

10 or political subdivision, as the case may be, and 

11 ‘‘(B) which is required (by written agree12 ment) by the State or political subdivision to 

13 furnish firefighting, search and rescue, or emer14 gency medical services in such State or political 

15 subdivision.’’. 

16 (2) CLERICAL AMENDMENT.—The table of sec17 tions for such part is amended by striking the last 

18 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.’’. 

19 (b) EXCLUSION FROM EMPLOYMENT TAXES.— 

20 (1) SOCIAL SECURITY TAXES.— 

21 (A) Section 3121(a) of the Internal Rev22 enue Code of 1986 (relating to definition of 

23 wages) is amended by striking ‘‘or’’ at the end 
4 

•S 1906 IS

1 of paragraph (21), by striking the period at the 

2 end of paragraph (22) and inserting ‘‘; or’’, and 

3 by inserting after paragraph (22) the following 

4 new paragraph: 

5 ‘‘(23) any qualified property tax rebate or other 

6 benefit (as defined in section 140(b)).’’. 

7 (B) Section 209(a) of the Social Security 

8 Act is amended by striking ‘‘or’’ at the end of 

9 paragraph (18), by striking the period at the 

10 end of paragraph (19) and inserting ‘‘; or’’, and 

11 by inserting after paragraph (19) the following 

12 new paragraph: 

13 ‘‘(20) Any qualified property tax rebate or 

14 other benefit (as defined in section 140(b) of the In15 ternal Revenue Code of 1986).’’. 

16 (2) UNEMPLOYMENT TAXES.—Section 3306(b) 

17 of the Internal Revenue Code of 1986 (relating to 

18 definition of wages) is amended by striking ‘‘or’’ at 

19 the end of paragraph (18), by striking the period at 

20 the end of paragraph (19) and inserting ‘‘; or’’, and 

21 by inserting after paragraph (19) the following new 

22 paragraph: 

23 ‘‘(20) any qualified property tax rebate or other 

24 benefit (as defined in section 140(b).’’. 
5 

•S 1906 IS

1 (c) WAGE WITHHOLDING.—Section 3401(a) of the 

2 Internal Revenue Code of 1986 (defining wages) is amend3 ed by striking ‘‘or’’ at the end of paragraph (21), by strik4 ing the period at the end of paragraph (22) and inserting 

5 ‘‘; or’’, and by inserting after paragraph (22) the following 

6 new paragraph: 

7 ‘‘(23) for any qualified property tax rebate or 

8 other benefit (as defined in section 140(b).’’. 

9 (d) EFFECTIVE DATE.—The amendments made by 

10 this section shall apply to taxable years beginning after 

11 the date of the enactment of this Act. 

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