Senate Taxation Committee hears bill to exempt first $3,000 of income for volunteer firefighters and EMTs

HELENA — Representative Lou Jones introduced House Bill 129 to the Senate Taxation Committee, proposing an exemption of the first $3,000 in income for qualifying volunteer firefighters and emergency medical services (EMS) providers from Montana income tax.

Jones said the exemption is intended as a modest, respectful recognition of volunteer responders who provide much of Montana’s rural fire and EMS service and to help recruitment and retention. “We’re gonna take about $3,000 of the income each one of these individuals earn, and we’re just going to exempt that income from Montana income tax,” Jones told the committee, describing the proposal as a small benefit tied to active, qualifying volunteer service.

Eligibility and intent

Under the bill as presented, the exemption would apply to volunteers with active membership who meet statutory training and certification thresholds (for example, completing required training hours and meeting EMS board‑of‑examiner requirements). Jones described the intent as recognition rather than a large financial incentive, and said the $3,000 figure was chosen as a modest amount tied to the time volunteers spend training and responding.

Support and fiscal effects

The Montana Hospital Association testified in support. Katie Mack, representing Montana hospitals, told the committee that many rural EMS agencies rely heavily on volunteers; recruitment and retention are persistent challenges and some providers said enhanced benefits could help. “Maintaining volunteers is critical for these agencies,” Mack said, adding that hospitals supported HB 129 and asked the committee to give it favorable consideration.

The Department of Revenue provided a fiscal estimate to the committee: the fiscal note projected a reduction in state income‑tax revenue of about $350,000 in fiscal year 2027, increasing to about $800,000 by fiscal year 2029. Department witnesses were available to answer questions about withholding, income‑tax application and the fiscal calculation.

Opposition and implementation alternatives

The Montana Society of CPAs testified in reluctant opposition, saying the exemption would add another special rule to the tax code and that the state should consider non‑tax alternatives such as grants for equipment or training. “We reluctantly oppose House Bill 129… adding just a tiny little bit of complication to our tax code,” Allen Lloyd told the committee.

Officials from the Department of Public Health and Human Services and the Department of Revenue answered committee questions about how volunteer counts are determined and how the exemption would be administered and verified.

Quotes from the hearing

• Representative Lou Jones (sponsor): “This isn’t doing a lot for them, but it does recognize how important they are.”

• Katie Mack, Montana Hospital Association: “Maintaining volunteers is critical for these agencies… increased benefits was cited as one of the recommendations to enhance staffing and recruitment efforts.”

• Allen Lloyd, Montana Society of CPAs (opponent): “We would prefer it not be done through the tax code… perhaps a grant program to help them with the cost of this training.”

What the hearing decided and next steps

The committee heard testimony but did not record a committee vote at the hearing. Department of Revenue and Department of Public Health and Human Services staff remain available to answer technical and fiscal questions. The sponsor asked the committee to advance the bill for further consideration; no formal action was recorded during the hearing.

Ending

Supporters described HB 129 as a modest recognition with a small fiscal cost; opponents urged alternatives that avoid expanding special rules in the tax code. The committee reserved decision‑making for a later meeting.