I
107TH CONGRESS
1ST SESSION
H. R. 1780
To amend the Internal Revenue Code of 1986 to allow a deduction for
contributions to a volunteer firefighter savings account.
IN THE HOUSE OF REPRESENTATIVES
MAY 9, 2001
Mr. LARSON of Connecticut (for himself and Mr. WELDON of Pennsylvania)
introduced the following bill; which was referred to the Committee on
Ways and Means
A BILL
To amend the Internal Revenue Code of 1986 to allow a
deduction for contributions to a volunteer firefighter sav-
ings account.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘Volunteer Firefighter’s
Relief Act’’.
SEC. 2. DEDUCTION FOR CONTRIBUTIONS TO VOLUNTEER
FIREFIGHTER SAVINGS ACCOUNTS.
(a) IN GENERAL.—Part VII of subchapter B of chap-
ter 1 of the Internal Revenue Code of 1986 (relating to
additional itemized deductions for individuals) is amended
by redesignating section 222 as section 223 and by insert-
ing after section 221 the following new section:
‘‘SEC. 222. CONTRIBUTIONS TO VOLUNTEER FIREFIGHTER
SAVINGS ACCOUNTS.
‘‘(a) DEDUCTION ALLOWED.—
‘‘(1) IN GENERAL.—In the case of an individual
who is a qualified volunteer firefighter, there shall be
allowed as a deduction for the taxable year an
amount equal to the contributions of the individual
to a volunteer firefighter savings account of the indi-
vidual for the taxable year.
‘‘(2) 
MAXIMUM
ANNUAL
AMOUNT.—The
amount allowable as a deduction under subsection
(a) to any individual for a taxable year shall not ex-
ceed $500.
‘‘(b) QUALIFIED VOLUNTEER FIREFIGHTER.—For
purposes of this section, the term ‘qualified volunteer fire-
fighter’ means an individual who, on the last day of the
taxable year, is a member in good standing of a qualified
volunteer fire department (as defined in section 150(e)).
‘‘(c) 
VOLUNTEER
FIREFIGHTER
SAVINGS
AC-
COUNT.—For purposes of this section, the term ‘volunteer
firefighter savings account’ means a trust created or orga-
nized in the United States for the exclusive benefit of an
individual and the individual’s beneficiaries, but only if the
written governing instrument creating the trust meets the
following requirements:
‘‘(1) No contribution will be accepted unless it
is in cash.
‘‘(2) The trustee is a bank (as defined in sec-
tion 408(n)) or another person who demonstrates to
the satisfaction of the Secretary that the manner in
which that person will administer the trust will be
consistent with the requirements of this section.
‘‘(3) No part of the trust assets will be invested
in life insurance contracts.
‘‘(4) The assets of the trust will not be commin-
gled with other property except in a common trust
fund or common investment fund.
‘‘(5) The interest of an individual in the bal-
ance of the individual’s account is nonforfeitable.
‘‘(d) TAX TREATMENT OF DISTRIBUTIONS.—
‘‘(1) IN GENERAL.—Except as otherwise pro-
vided in this subsection, any amount paid or distrib-
uted out of a volunteer firefighter savings account
shall be included in the gross income of the payee
or distributee for the taxable year in which the pay-
ment or distribution is received in the manner pro-
vided under section 72.