$500 Illinois Tax Credit for Firefighters: How to Claim It

Illinois recently announced a statewide tax rebate for active volunteer firefighters. This new Illinois tax credit for firefighters provides a $500 nonrefundable credit to firefighters who meet certain criteria. Credits are awarded on a first-come, first-served basis.

Illinois Tax Credit for Firefighters: Who Can Get It and How?

Last April, Illinois announced an “emergency volunteer worker credit” that would cut $500 from volunteer firefighters’ 2023 income if they meet certain requirements. In other words, the Illinois tax credit for firefighters reduces your state’s income tax burden for that tax year.

To qualify for the credit, volunteer firefighters must have served with the organization for at least nine months and earned less than $5,000 (compensation for volunteer emergency worker services) in the past year.

Additionally, the firefighter’s work must be verified by the chief, and the firefighter must apply for credit. For more information about the tax credit, including how to apply, visit the IDOR website.

This credit is applied to the firefighter’s state income tax before withholding and refundable tax credits. It is important to note that the tax credit can only be used to reduce your state income tax liability and that the credit is non-refundable and therefore not refundable.

Additionally, anyone who received a property tax credit and/or a K-12 education credit that would reduce their tax liability to zero cannot use this new credit. Additionally, credits are not transferable. This means that if you can’t use the credit, you can’t allow someone else to use it to reduce your tax liability.

The total amount of credits granted may not exceed $5,000,000 per year. This means that 10,000 firefighters per year would be eligible for the Illinois firefighter tax credit. This credit is available on a first-come, first-serve basis, so you should apply early to increase your chances of receiving the credit.

What do you need?

With this new credit, Illinois hopes to address the shortage of first responders, a widespread problem across the country. The number of volunteer firefighters hit a record low in 2020, according to the National Volunteer Fire Council.

The council also identified challenges in recruiting and retaining firefighters, such as increased training and time requirements, lack of volunteer hours, and many leaving small towns and rural areas and working multiple jobs. It typically takes about 18 months to become a fully trained volunteer.

All of these reasons mean people have less time to volunteer and there is a shortage of new recruits. For this reason, several states have developed similar credits to encourage people to become volunteer firefighters.

People interested in joining the fire department as a volunteer can find opportunities through MakeMeAFirefighter.org, a website maintained by the National Volunteer Fire Council.