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Maryland Income Tax

DMINISTRATIVE

ELEASE

Administrative Release No. 29

Subject: Subtraction Modification for Volunteer Fire, Rescue or

Emergency Medical Services Personnel

I. General

requirement during a taxable year. These new

provisions are effective for all taxable years

The 1995 legislature enacted Senate Bill 144

beginning after December 31, 2002.

(Chapter 508) providing a special subtraction

II. Qualifying individuals

modification for qualifying volunteer fire, rescue or

emergency medical services members. The amount

An individual is a qualifying volunteer fire, rescue

of the subtraction modification was equal to

or emergency medical services member for the

$3,000, which in effect is an exemption from

purpose of this subtraction modification if the

Maryland income tax.

individual:

In 1998, the legislature enacted Senate Bill 396

A. Is an active member of a bona fide Maryland

(Chapter 384) increasing the subtraction

fire, rescue or emergency medical services

modification from $3,000 to $3,500. The increase

organization;

is effective for taxable years beginning after

B. Is an active member of an auxiliary

December 31, 1998. If a joint return is filed and

organization of a bona fide Maryland fire, rescue,

both spouses are qualifying individuals, then the

or emergency medical services organization;

subtraction may be up to $7,000. In order to

qualify for the maximum amount, each qualifying

C. Serves the organization in a volunteer

spouse must have at least $3,500 of income.

capacity without compensation, except nominal

expenses or meals;

In 2000, the legislature enacted House Bill 1303

(Chapter 472) that reduces, over a four-year period,

D. Qualifies for active status during the taxable

the duration of active membership with a bona fide

year; and

Maryland volunteer fire, rescue or emergency

E. Will have been an active member of a bona

services organization required of an individual to

fide Maryland fire, rescue or emergency medical

qualify for the subtraction. The new service

services organization or an auxiliary organization of

requirements are effective for all taxable years

a bona fide Maryland fire, rescue, or emergency

beginning after December 31, 1999.

medical services organization during the last 10

Senate Bill 850, Chapter 436, Acts of 2001,

calendar years by December 31 of the taxable year

modified the subtraction modification to include an

for at least:

auxiliary organization of a bona fide Maryland fire,

1. 72 months before January 1, 2001;

rescue, or emergency medical services organization

as a qualifying organization. Qualifying members

2. 60 months after December 31, 2000;

may claim the subtraction for all taxable years

3. 48 months after December 31, 2001; and

beginning after December 31, 2000.

4. 36 months after December 31, 2002.

Taxpayers receiving benefits under the existing

Length of Service Award Program (LOSAP) may

III. Active status

continue to exclude the benefits received under that

An individual shall be considered in active status

program in addition to the exclusion provided

if the person qualifies for active status under:

under this new legislation.

A. 1. A volunteer fire, rescue or emergency

In 2003, the legislature enacted Senate Bill 746

medical services personnel or auxiliary LOSAP

(Chapter 267) that adds two new ways in which a

operated by a county or municipal corporation of

qualifying member may satisfy the active status

Lamsfa Form 4 - Subtraction Modification Point System Reporting Program Individual End-Of-Year Points Report - Maryland Income Tax

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