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Pennsylvania passes a special local tax credit for active volunteers

Pennsylvania recently passed a special local tax credit for active volunteers. An “active volunteer” means someone contributing time and serves to a volunteer fire company or nonprofit emergency medical services agency that has complied with the requirements of the volunteer service program and is certified under PA law. Municipalities that levy an earned income tax are allowed to provide a tax credit against an individual’s tax liability for active service as a volunteer. Also allowed are credits against real property tax owned and occupied by an active volunteer. The credits cannot exceed 100% of the tax owed by the volunteer. The bill tax becomes effective 60 days after Oct. 29, 2020.