I
107TH CONGRESS
2D SESSION
H. R. 5027
To amend the Internal Revenue Code of 1986 to provide a tax credit for
police officers and professional firefighters, and to exclude from income
certain benefits received by public safety volunteers.
IN THE HOUSE OF REPRESENTATIVES
JUNE 26, 2002
Mr. PAUL 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 provide
a tax credit for police officers and professional fire-
fighters, and to exclude from income certain benefits
received by public safety volunteers.
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 ‘‘Public Safety Tax Cut
Act’’.
SEC. 2. CREDIT FOR POLICE OFFICERS AND PROFES-
SIONAL FIREFIGHTERS.
(a) IN GENERAL.—Subpart A of part IV of sub-
chapter A of chapter 1 of the Internal Revenue Code of
1986 (relating to nonrefundable personal credits) is
amended by inserting after section 25B the following new
section:
‘‘SEC. 25C. POLICE OFFICERS AND PROFESSIONAL FIRE-
FIGHTERS.
‘‘(a) ALLOWANCE OF CREDIT.—In the case of an eli-
gible individual, there shall be allowed as a credit against
the tax imposed by this chapter for a taxable year an
amount equal to $1,000.
‘‘(b) ELIGIBLE INDIVIDUAL.—For purposes of sub-
section (a), the term ‘eligible individual’ means an indi-
vidual who—
‘‘(1) is a police officer or firefighter in a police
department or fire department which is organized
and operated by a State or political subdivision to
provide police protection, firefighting services, or
emergency medical services for any area within the
jurisdiction of such State or political subdivision,
and
‘‘(2) is employed on a full-time basis during the
taxable year as a police officer or firefighter.’’.
(b) CLERICAL AMENDMENT.—The table of sections
for subpart A of part IV of subchapter A of chapter 1
of such Code is amended by inserting after the item relat-
ing to section 25B the following new item:
‘‘Sec. 25C. Police officers and professional firefighters.’’.
(c) EFFECTIVE DATE.—The amendments made by
this section shall apply to taxable years beginning after
December 31, 2002.
SEC. 3. EXCLUSION FROM GROSS INCOME OF CERTAIN
BENEFITS RECEIVED BY PUBLIC SAFETY
VOLUNTEERS.
(a) IN GENERAL.—Part III of subchapter B of chap-
ter 1 of the Internal Revenue Code of 1986 (relating to
items specifically excluded from gross income) is amended
by inserting after section 139 the following new section:
‘‘SEC. 139A. BENEFITS RECEIVED BY PUBLIC SAFETY VOL-
UNTEERS.
‘‘(a) IN GENERAL.—Gross income does not include
the value of any public services benefits received by a pub-
lic safety volunteer.
‘‘(b) DEFINITIONS.—For purposes of this section—
‘‘(1) The term ‘public services benefits’ means
services such as water, sewer, trash pickup, or other
similar services provided by a State or local govern-
ment agency as a benefit to its public safety volun-
teers.
‘‘(2) The term ‘public safety volunteer’ means a
volunteer firefighter or volunteer auxiliary police of-
ficer.’’.
(b) CLERICAL AMENDMENT.—The table of sections
for part III of subchapter B of chapter 1 of such Code
is amended by inserting after the item relating to section
139 the following:
‘‘Sec. 139A. Benefits received by public safety volunteers.’’.
(c) EFFECTIVE DATE.—The amendment made by
this section shall apply to amounts received in taxable
years beginning after December 31, 2002.
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