House Finance committee approves $5,000 cap, tax exemption for volunteer firefighter LOSAP contributions

The House Finance Committee on a voice vote approved Amendment 738 to House Bill 1306, adopting a $5,000 cap on contributions to volunteer firefighter Length of Service Award Programs (LOSAPs) and exempting qualifying distributions from Pennsylvania personal income tax for individuals age 65 and older.

The committee executive director summarized the amendment: “Amendment 738 would, establish a $5,000 cap for contributions and, make distributions exempt from the personal income tax as long as the individual is 65.” The executive director also clarified that the amendment applies to contributions and distributions tied to LOSAP accounts.

Committee members discussed prior iterations of similar legislation and the role of the age threshold. The executive director noted that a 65‑year age threshold had been included in earlier drafts: “We had this bill in the previous session, and we had the, 65 old threshold, in the legislation last time.” The executive director additionally said the cap would not apply to any post‑contribution investment growth in a participant’s LOSAP account.

Representative Fleming thanked the sponsor for “clarify[ing] and tighten[ing] the language.” There were no negative votes recorded on Amendment 738, and the committee chair announced the amendment passed unanimously. The committee executive director then described the bill as amended, saying the legislation would “exclude contributions as well as distributions from volunteer firefighter length of service award, known as LOSAPs.”

After brief additional discussion there were no negative votes on House Bill 1306 as amended; the chair announced the bill passed the committee unanimously.

The action clears the measure for whatever next steps the committee (or sponsoring office) determines; the transcript does not indicate further scheduling or implementation details.