Income Tax – Subtraction Modification for Volunteer Fire, Rescue or Emergency Services Personnel
(Tax Incentive Program [TIP])
The TIP was established by the Maryland Legislature in 1995 and took effect for tax year 1996. It has had several enhancements over the years.
Each company must keep an accurate record of its member’s participation and provide each member a copy of the MSFA-P.2.2 no later than February 15 following the tax year. As soon after February 15 as possible, the company must send the county point system coordinator its list of qualifying members, social security numbers, years of service and number of points. The coordinator will compile an alphabetical list of its county and send it to the committee no later than May 1 following the tax year. The committee compiles the data in the format requested by the Comptroller’s office and submits this information to that office before October 1 following the tax year with a copy to the MSFA Secretary.
The TIP is a statewide program financed by the state; therefore, service time and points are transferable to any county in the state. The program allows qualifying individuals to reduce their Maryland taxable income in 2017 by up to $4,500. In 2018, that number increases to up to $4,750 and up to $5,000 for 2019 and beyond.