Through Canada’s Economic Action Plan, the federal government introduced a Volunteer Firefighters Tax Credit in recognition of the critical role volunteer firefighters play in serving their communities.
About the Initiative
The Volunteer Firefighters Tax Credit provides a 15% non-refundable tax credit based on an amount of $3,000 for volunteer firefighters who perform at least 200 hours of service for their communities during the year.
How It Works
The measure applies for the 2011 and subsequent taxation years. Eligible volunteer firefighters may claim the credit on their tax return.
Who Is Eligible
A volunteer firefighter who performs at least 200 hours of volunteer firefighting services in a taxation year for one or more fire departments is eligible for the credit. Services consist primarily of responding to and being on call for firefighting and related emergency calls, attending meetings held by the fire department, and participating in required training related to the prevention or suppression of fires.
Eligible volunteer firefighters who receive honoraria in respect of their duties as a volunteer firefighter are able to choose between the new tax credit and continuing to be entitled to the existing tax exemption of up to $1,000 for honoraria.
Eligible volunteer firefighters may claim the credit on their tax return.