Tax Credits for Volunteer Firefighting and Search and Rescue Volunteer Services

Date:

November 2024

Expiry Date:

December 2027

Current Status:

Incomplete Information

Sponsors:

Athabasca County

District:

3 – Pembina River

Year:

2024

Convention:

Fall

Category:

Emergency Services

Status:

Incomplete Information

Vote Results:

Carried as Amended

Preamble:

WHEREAS Canada has 90,000 volunteer firefighters who provide fire and all hazard emergency services to their communities; and

WHEREAS Canada has approximately 8,000 essential search and rescue volunteers who respond to thousands of incidents every year; and

WHEREAS many of these individuals receive some form of pay on call, an honorarium, or are given some funding to cover expenses, but they do not draw a living wage from firefighting; and

WHEREAS without volunteer firefighters and search and rescue volunteers, thousands of communities in Canada would have no fire and emergency response coverage; and

WHEREAS in 2013, the Government of Canada initiated a tax credit recognizing these individuals; and

WHEREAS volunteer firefighters and search and rescue volunteers can claim a $3,000 tax credit if 200 hours of volunteer services were completed in a calendar year; and

WHEREAS the $3,000 tax credit is inadequate to encourage recruitment and retention of volunteers or to properly recognize the risks and importance of their role; and

WHEREAS volunteer firefighters account for 71% of Canada’s total firefighting essential first responders;

Operative Clause:

THEREFORE, BE IT RESOLVED THAT the Rural Municipalities of Alberta advocate to the governments of Alberta and Canada to increase the amount of the volunteer and paid on call firefighting and search and rescue volunteer services tax credit to $10,000.

Member Background:

Canada has 90,000 volunteer firefighters who provide fire and all hazard emergency services to their communities. Many of these individuals receive some form of pay on call, an honorarium, or are given some funding to cover expenses, but they do not draw a living wage from firefighting. About 30% of them pay out of pocket to cover expenses associated with the service they provide to their community. An additional 8,000 search and rescue volunteers also offer critical services.

Without volunteer firefighters and search and rescue volunteers, thousands of communities in Canada would have no fire and emergency response coverage. The tax base simply cannot handle the cost of a career department.

In 2013, the federal government initiated a tax credit recognizing these individuals, but that tax credit has not kept up with cost of living. MP Gord Johns has been calling on the federal government to increase this tax credit from $3,000 to $10,000.

Further information:

  • The tax code of Canada currently allows volunteer firefighters and search and rescue volunteers to claim a $3,000 tax credit if 200 hours of volunteer services were completed in a calendar year;
  • This works out to a mere $450 per year, which we allow these essential volunteers to keep of their own income from their regular jobs, $2.25 an hour;
  • If they volunteer more than 200 hours, which many do, this tax credit amounts to even less than $3000;
  • These essential volunteers not only put their lives on the line and give their time, training and efforts to Canadians, but they also allow cities and municipalities to keep property taxes lower than if paid services were implemented;

The increased tax credit would also help retain these volunteers in a time when volunteerism is decreasing.

RMA Background:

1-22F: Volunteer Firefighters as Medical First Responders

THEREFORE, BE IT RESOLVED that the Rural Municipalities of Alberta advocate to the Government of Alberta to compensate municipalities that operate a fire service with volunteers or employees that are qualified as Medical First Responders in instances when those volunteers or employees respond to emergencies due to the absence or delay of provincial emergency medical technicians and paramedics in their service area.

Click here to view the full resolution.

Government Response:

Alberta Municipal Affairs

Municipal Affairs recognizes the critical role firefighter and search and rescue volunteers play in protecting lives and ensuring community safety across the province. This importance was also acknowledged by the federal government when it announced plans to amend the Income Tax Act to double the tax credits, from $3,000 to $6,000, as part of its Budget 2024.

In Alberta, municipalities are responsible for ensuring their fire services meet the needs of the community, as they are in the best position to determine service levels and provide incentives to local volunteers. The Government of Alberta does not legislate provincial fire service standards.

Municipal Affairs is currently undertaking a Fire Service Review and recently completed engagement with stakeholders to better understand what changes could be made to best support fire services and the communities they serve.

Development:

Resolution 5-24F calls for RMA to advocate to the provincial and federal governments to increase the amount of the volunteer and paid on call firefighting and search and rescue tax credit from $6,000 to $10,000. RMA sent this resolution to Alberta Municipal Affairs, Alberta Public Safety and Emergency Services, Emergency Preparedness Canada and Finance Canada. To date, RMA has received a response from Municipal Affairs.

The response from Municipal Affairs explains that the federal government increased the volunteer firefighter and search and rescue volunteers tax credit from $3,000 to $6,000 in budget 2024. They go on to say that while firefighters and search and rescue volunteers play a critical role in community safety, Alberta municipalities are ultimately responsible for providing this critical service and that they believe municipalities, rather than the provincial or federal government, should be incentivizing these volunteer services. Their remarks do not comment on what extent they believe the results of the Fire Service Review will benefit or speak to support for these critical services.

RMA is disappointed by Municipal Affairs response but assigns this resolution a status of Incomplete Information, as the tax credit is primarily administered at the federal level.

Provincial Ministries:

Municipal Affairs, Public Safety and Emergency Services

Provincial Boards and Organizations:

None reported.
Federal Ministries and Bodies:
Finance, Emergency Preparedness

Internal Notes:

None reported.