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Standard Summary
Comprehensive overview in 1-2 paragraphs
This bill, titled the No Tax on Length of Service Award Programs Act (No Tax on LOSAP Act), would change how certain payments to volunteer firefighters and emergency medical services (EMS) personnel are treated for federal income tax purposes. It would (1) raise the exclusion from gross income for qualified payments from $50 to $1,000 per payment, and (2) explicitly include payments made under Length of Service Award Programs (LOSAP) in the definition of “qualified payments.” The intent is to make more of these volunteer-related payments tax-free, providing greater financial support to volunteers and the programs that reward long service. The changes would apply to payments awarded after the enactment date.
Key Points
- 1Increases the qualified payment exclusion from $50 to $1,000. This means eligible payments to volunteer firefighters and EMS providers could be tax-free up to $1,000 per payment (per the qualified-payment rule under Internal Revenue Code Section 139B(c)(2)(B)).
- 2Adds LOSAP payments to the list of allowed “qualified payments.” The bill explicitly states that LOSAP payments are included in the qualified-payment definition, ensuring LOSAP rewards are exempt from federal income tax as long as they meet the program requirements.
- 3Effective date: The changes apply to amounts awarded after the enactment date, not retroactively.
- 4Short title: The act is known as the “No Tax on Length of Service Award Programs Act” or “No Tax on LOSAP Act.”
- 5Legislative status: Introduced in the House (H.R. 2279) on March 21, 2025; referred to the House Committee on Ways and Means. No Senate action is indicated in the provided text.
Impact Areas
Primary group/area affected: Volunteer firefighters and EMS personnel who participate in LOSAP or other qualified payments, as well as organizations and departments administering LOSAP and related volunteer programs.Secondary group/area affected: Local and state governments or organizations that fund or administer LOSAP and other qualified payments, since the federal tax treatment could influence how programs are structured or funded.Additional impacts: Potential revenue impact to the federal government from higher tax exclusions; possible administrative adjustments for employers, state/local agencies, and LOSAP administrators to implement the higher exclusion and ensure LOSAP payments are treated as qualified payments. Could influence volunteer recruitment and retention by increasing the after-tax value of service awards.
Generated by gpt-5-nano on Nov 18, 2025