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At the end of 2020, Pennsylvania passed a special local tax credit for active volunteers. An “active volunteer” means someone contributing time and service to a volunteer fire company or nonprofit emergency medical services agency. The nonprofit must have complied with the requirements of the volunteer service program and be certified under PA law. Municipalities that levy an earned income tax can 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. For more information, contact us.

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