Volunteer Responder Incentive Protection Reauthorization Act

The Volunteer Responder Incentive Protection Act (VRIPA) was signed into law on December 20, 2007, amending the Internal Revenue Code of 1986 to exclude tax benefits and up to $360 per year in other benefits provided to volunteer firefighters and EMS personnel from employment taxes and wage withholding. Passage of VRIPA was a top legislative priority for the NVFC in the 110th Congress.

 

The IRS determined in April of 2008 that it would continue to withhold Social Security, FICA, etc. taxes from all benefits received by volunteers, including those exempted from taxation by VRIPA. Congress passed legislation in July of 2008 to clarify that the IRS should not withhold any money from the tax-exempt benefits of volunteer first responders.

 

VRIPA is slated to expire at the end of 2010. On September 29, 2009, Congresswoman Tammy Baldwin (D-WI), along with original co-sponsor Dave Reichert (R-WA) introduced the Volunteer Responder Incentive Protection Reauthorization Act (H.R. 3666), which would extend VRIPA through 2013 and increase the amount of non-property tax-related benefits that volunteers can receive tax-free from $360 to $600 per year. Senator Chris Dodd (D-CT) and Senator Susan Collins (R-ME) introduced Senate companion legislation (S. 3136) on March 18, 2010.