Firefighter tax credit still on hold in Lower Burrell

A proposed municipal tax credit, as high as $300, is on hold for firefighters living in Lower Burrell.

That’s because city council was not able to complete the details of the package this year, according to Councilman Joe Grillo.

Former Mayor Rich Callender said he floated the idea to council during his tenure more than three years ago and promoted the idea with the school district and the county.

Grillo, as director of public safety, then brought up the tax credit to council in 2019.

Last year, council made progress on the proposal that would let firefighters who live in the city forgo the city’s half of the 1% earned income tax — the other half goes to the Burrell School District — up to $300.

A volunteer firefighter earning $60,000 annually would be eligible for the maximum tax break. Firefighters earning less would receive less of a tax break, equal to 0.5% of their income.

State Act 172 of 2016 provides communities the option to offer a real estate or earned income tax credit to active members of volunteer fire companies and nonprofit emergency service agencies.

Each municipality may choose to offer an earned income tax credit, a real estate tax credit, or both, according to the Pennsylvania Governor’s Center for Local Government Service.

“Covid slowed things down,” Grillo said. “We are working on what firefighting residents will be eligible for it.”

Grillo said he didn’t think council would finish the proposal by the end of the year. He won’t be around next year to support the proposal because his term expires at the end of this year and he is not seeking re-election.

“The tax credit supports extra help to the firefighters because they deserve it,” he said.

Councilman Chris Fabry said he was saddened that the tax break for the firefighters hadn’t happened yet.

“I am optimistic that the new council will have this passed early next year,” he said.

Mayor John Andrejcik said he waiting for a timely passage of the tax credit.

“Sure hope they don’t have to wait much longer for the tax credit,” he said. “They deserve any break they can get, especially in the trying times we face.”

The tax credit is meant to be an incentive for new firefighters and a reward for existing ones, Grillo said.

Firefighters at the city’s two fire companies, Lower Burrell No. 3 and Kinloch, are volunteers.

Like other volunteer fire departments across the state, Lower Burrell’s departments are always looking for additional firefighter to beef up their ranks. The state’s pool of volunteer firefighters dropped from more than 300,000 in the 1970s to about 38,000 in 2018, according to the Pennsylvania Fire and Emergency Services Institute, based in Harrisburg.

“We were under the assumption that the tax credit would be in place for this year,” said Mark Marmo, chief of Lower Burrell Volunteer Fire Company No. 3. “However, we do empathize with everybody trying to operate with the pandemic looming over our heads.”

Marmo said his department will provide documentation to verify firefighters’ activity level and home addresses.

“We are looking forward to city council creating a positive tax credit, rebate for the firefighters,” he said.

While $300 might not change someone’s mind to be or not be a volunteer firefighter, it would be helpful, Marmo said.

“We do this for free, plus we have expenses out-of-pocket such as gas, company T-shirts and other costs,” he said.

Earlier, city Administrator Amy Rockwell said she didn’t know how many firefighters might take advantage of or qualify for the tax break in Lower Burrell. If 40 firefighters took the tax break, that would cost the city as much as $12,000 in revenue, she said.

That $12,000 revenue loss amounts to just less than 0.2% of the city’s $6.65 million budget for 2021.