HB278 Alabama 2026 Session

Summary

Primary Sponsor

Kerry UnderwoodRepresentative

Republican

Session

2026 Regular Session

Title

Firefighters and rescue squad members, income tax credit for training under certain conditions expanded

Summary

HB278 expands and makes permanent the Alabama state income tax credit for training for qualified volunteer firefighters and rescue squad members, with higher credits for advanced certification and new training requirements.

What This Bill Does

The bill updates the tax credit program so eligible volunteers can claim credits based on their certification level and annual training. For 2023–2027, basic-level volunteers can get $300 and higher-level volunteers can get $600, with newer thresholds for advanced certifications. Starting in 2027, credits shift to $400 for Firefighter I/EMT-Basic and $200 for Emergency Medical Responder or related roles. A minimum of 30 hours of approved training per year is required, with training pre-approved by the department or rescue squad and documented to claim the credit. The Department of Revenue will provide a standardized certificate and require copies of training certificates and licenses; missing documentation results in automatic denial. The act becomes effective June 1, 2026.

Who It Affects

• Qualified volunteer firefighters (including EMT-Basic) and qualified rescue squad members who complete approved training.
• Volunteer fire departments and rescue squads that must pre-approve and certify training hours
• Taxpayers claiming the credits, who must submit certificates and licenses to the Department of Revenue
• The Alabama Department of Revenue, which administers the credit and documentation requirements
• Training providers and certifying bodies (e.g., Alabama Fire College, Alabama Office of Emergency Medical Services) whose certifications are part of the eligibility documents

Key Provisions

• Amends Section 40-18-481 to expand and permanentize the income tax credit for training for qualified volunteers and rescue squad members
• Tax years 2023–2027: $300 credit for basic-level volunteers (Firefighter/EMT-Basic or Rescue Squad EMT-Basic); $600 for higher levels (Firefighter II/Advanced EMT/Paramedic or Rescue Squad Advanced EMT/Paramedic)
• Tax years 2027 onward: $400 credit for Firefighter I or EMT-Basic (and Rescue Squad EMT-Basic); $200 credit for Emergency Medical Responder, Fire Support, or Rescue Squad First Responder
• Minimum of 30 training hours per year, earned through organized training approved for fire service or EMS and pre-approved by the relevant department
• Training hours must be certified with a form approved by the Department of Revenue, and claims require copies of the training certificates and licenses
• Automatic denial of the credit if required documentation is not filed
• The Department of Revenue may adopt rules to implement and administer the credit
• Effective date: June 1, 2026

AI-generated summary using openai/gpt-5-nano-2025-08-07 on Mar 31, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Taxation & Revenue