What is the Volunteer First Responder Mileage Tax Credit?

Effective January 1, 2024, Act 2023-510 provides that an individual who is a member of a volunteer fire department or a volunteer rescue squad shall be entitled to a state income tax credit as reimbursement to the volunteer first responder for use of their private vehicle when responding to a fire, emergency, or rescue call. The head of the department of each volunteer first responder shall maintain the mileage records for each call responded to and will provide the volunteer first responder a signed certificate indicating the total mileage for the year. The tax credit is allowed up to the liability of the taxpayer only. The tax credit is non-refundable, not transferable, and may not be carried forward. The tax credit shall equal the total annual unreimbursed mileage at the standard mileage rate allowed for state employees pursuant to Section 36-7-22, Code of Alabama 1975.