H. R. 2560
IN THE HOUSE OF REPRESENTATIVES
May 7, 2019
Mr. Norman (for himself, Mr. Meadows, Mr. Fitzpatrick, Mr. Ruppersberger, Ms. Sherrill, Ms. Stefanik, Mr. Cole, and Mr. Gianforte) introduced the following bill; which was referred to the Committee on Ways and Means
To amend the Internal Revenue Code of 1986 to exclude certain disability-related first responder retirement payments from gross income.
This Act may be cited as the
Putting First Responders First Act.
Exclusion of certain disability-related first responder retirement payments
Part III of subchapter B of chapter 1 of the Internal Revenue Code of 1986 is amended by inserting after section 139B the following new section:
Certain disability-related first responder retirement payments
In the case of an individual who receives qualified first responder retirement payments for any taxable year, gross income shall not include so much of such payments as do not exceed the annualized excludable disability amount with respect to such individual.
Qualified first responder retirement payments
For purposes of this section, the term qualified first responder retirement payments means, with respect to any taxable year, any pension or annuity which but for this section would be includible in gross income for such taxable year and which is received—
from a plan described in clause (iii), (iv), (v), or (vi) of section 402(c)(8)(B), and
in connection with such individual’s qualified first responder service.
Annualized excludable disability amount
For purposes of this section—
The term annualized excludable disability amount means, with respect to any individual, the service-connected excludable disability amounts which are properly attributable to the 12-month period immediately preceding the date on which such individual attains retirement age.
Service-connected excludable disability amount
The term service-connected excludable disability amount means periodic payments received by an individual which—
are not includible in such individual’s gross income under section 104(a)(1),
are received in connection with such individual’s qualified first responder service, and
terminate when such individual attains retirement age.
Special rule for partial-year payments
In the case of an individual who only receives service-connected excludable disability amounts properly attributable to a portion of the 12-month period described in paragraph (1), such paragraph shall be applied by multiplying such amounts by the ratio of 365 to the number of days in such period to which such amounts were properly attributable.
Qualified first responder service
For purposes of this section, the term qualified first responder service means service as a law enforcement officer, firefighter, paramedic, or emergency medical technician.
The table of sections for part III of subchapter B of chapter 1 is amended by inserting after the item relating to section 139B the following new item:
Sec. 139C. Certain disability-related first responder retirement payments.
The amendments made by this section shall apply to amounts received with respect to taxable years beginning after the date of the enactment of this Act.