Volunteer firefighters could claim a $200 state income tax credit

The introduced text says a qualifying firefighter is entitled to a $200 credit against adjusted gross income tax. This covers an individual who is an active volunteer firefighter in Indiana for at least six months during the tax year. The credit is limited to the tax remaining after credits applied before it. Unused amounts cannot be refunded or carried to another tax year. It applies only to tax years beginning after December 31, 2025. The text lists January 1, 2026, as the retroactive effective date.

The state tax department would prescribe a standard service-confirmation form for fire departments to use. The confirmation covers volunteer service with a fire department. Fire departments would give the confirmation to each volunteer who served with them during the preceding calendar year. Paper filers would attach it to their return. Electronic filers would keep it with their records and send it to the department if asked. Departments would issue the confirmation before February 1 each year for service during the immediately preceding calendar year.