Proposed tax credit to help retain N.B. volunteer firefighters
Finance minister tables legislation to give tax relief to volunteer firefighters
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The New Brunswick Association of Fire Chiefs says a new tax credit for volunteer firefighters will help to retain firefighters in the province.
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Finance and Treasury Board Minister Ernie Steeves tabled the amendment to the New Brunswick Income Tax Act earlier this week.
If passed, it would provide provincial non-refundable tax credits for people who volunteer as firefighters and search and rescue workers.
Beginning with the 2024 taxation year, the tax credits would be provided to those who perform at least 200 hours of eligible service in a year. Those hours could be combined between the two volunteer positions, however a person could only claim one of the two credits.
The province said in a news release the proposed eligibility conditions match those of the existing federal tax credits. According to the federal government website, firefighters and search and rescue volunteers can claim $3,000 on their tax return.
It is estimated that 3,000 New Brunswick tax filers would benefit from these new credits.
Steeves said he understands that recruitment and retention is key for search and rescue and firefighters, and the hope is the tax credits will help bring in and keep more of the public safety volunteers.
“Volunteer firefighters and search and rescue personnel are two vital groups we often count on in times of critical need,” he said in the release.
“The responsibilities of firefighters, for example, have expanded greatly and they are often on the scene for car crashes, medical calls, overdoses, off-road rescues and forest fires.”
Finance Department spokesperson Alycia Bartlett said in an email the maximum amount the volunteer firefighters can deduct is $5,000. The tax rate applied to the non-refundable block is 9.4 per cent, translating to a maximum tax relief of $470.
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Scott Poupart, president of New Brunswick Association of Fire Chiefs, said the provincial tax credit is something his association has been lobbying for.
The association has been looking for initiatives to assist in the recruitment for volunteer firefighters, and retain the ones already serving. More than 85 per cent of the firefighters in the province are volunteers.
The number of volunteer firefighters in New Brunswick have been dwindling, as more of the older members hang up their gear.
You're certainly not doing it for the money
Troy Collins
Some reasons why retaining members has become difficult is because many people are working remotely and are not living near the stations. The cost of fuel is also playing a role in people’s decision to leave the department because they are paying for the gas to attend training or respond to calls.
“If they have a family and their budgets are tight, sometimes they have to cut,” said Poupart.
Departments compensate their volunteers differently across the province. Some reimburse by the kilometre, and others offer a stipend.
“It’s not a lot of compensation,” he said.
Troy Collins, chief of the Hillsborough Fire Department, said most people choose to be volunteer firefighters because of their desire to help the community.
“You’re certainly not doing it for the money,” he said.
The support from the community is one of the biggest incentives to keep people in the department.
“It’s hard to get that motivation for people to do something for the community if the community does not appreciate it,” he said.
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The Hillsborough department is not currently struggling to get volunteers, but Collins said there are challenges for members, such as making the time for training, and getting the time off work to respond to calls, which sometimes requires using vacation days.
Poupart said the association is making changes in order to attract the next generation of firefighters, like adjusting the requirements to become a Level 1 firefighter.
“Somebody may come through the door and not wish to be an individual that runs into a burning building,” he said. “They may offer skills such as being a real good heavy equipment operator that can drive a truck and run a pump for us.”
For Collins, it is too early to tell what kind of impact the proposed provincial tax credit will have, but when it comes to compensating volunteers, every bit counts.
“It’s certainly of interest,” he said.
Poupart said the tax credit would be beneficial for volunteers, and the association is hoping for a private member’s bill to increase already existing federal tax credit.
There has been some confusion about the proposed provincial tax credit since it was first announced, so the association plans to send out a notice to its members to explain how it works.
The second reading will be held in May, Bartlett said.
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