But there’s good news in this year’s state budget.  Tucked away in the revenue bill (along with child tax credits and late October property tax rebate checks) the state legislature enacted a $200 refundable state income tax credit for volunteer firefighters and ambulance workers.  Yes, this legislatively initiated tax credit was swept up in the governor’s vetoes, but the legislature overwhelmingly (and constitutionally) overrode the veto.  This $200 state income tax credit is now law, starting in 2007, relieving school boards of this Hobson’s Choice.

In counties with an existing real property exemption option, volunteers may only choose one tax break or the other.  Most will choose the $200 state tax credit as more lucrative (plus the volunteer does not need to be a home owner to qualify).  In counties where the 10% exemption isn’t capped, it’s less clear which is the more lucrative benefit for volunteers.  But board members in counties without the real property tax exemption will likely not have to face this issue now.  NYSSBA has for years urged the legislature to provide a state, rather than local incentive for volunteers.  We commend them for a job well done.

More Details.