Volunteer Firefighters May Apply for New Tax Credit

The process is in place for volunteer firefighters in Nova Scotia to claim a new tax credit for 2007.

As outlined in the 2007 budget, volunteer firefighters may be eligible for a $250 refundable tax credit for 2007 that will increase to $375 in 2008 and $500 in 2009.

Cabinet approved regulations under the Income Tax Act last week that outline eligibility criteria and how to apply.

"Volunteer firefighters play an essential role in keeping rural Nova Scotia communities safe," said Finance Minister Michael Baker. "The tax credit is one way we can provide support to our firefighters across the province, to make it easier for them to do what is already a very tough job."

The tax credit is for active members of the volunteer firefighting community and was developed in consultation with fire chiefs across the province. To be eligible, firefighters must:

• be engaged in the provision of fire services as a member of a volunteer fire department in the taxation year (Jan. 1 to Dec. 31);
• participate in no less than 20 per cent of emergency calls responded to by the volunteer fire department; training sessions conducted by the volunteer fire department; and meetings held by the volunteer fire department.

Volunteer fire department fire chiefs are required to submit a report to the Minister of Finance by March 31 certifying that each individual on the report meets the eligibility criteria in the Income Tax Act and the accompanying regulations. More detail on the tax credit is available at www.gov.ns.ca/finance .

It is estimated that Nova Scotia volunteer firefighters will collectively receive an estimated $2.3 million benefit in 2007 taxes.

The introduction of the tax credit is the most recent form of support for Nova Scotia firefighters. The premier also announced in September the Emergency Services Provider Fund -- a $5-million, one-year provincial program for volunteer fire departments.