Volunteer firefighters and fire departments could get some economic relief if two prefiled bills pass the Kentucky legislature in the upcoming session.

Both bills were filed by Rep. Brad Montell, R-Shelbyville.

Volunteer firefighters do the lion's share of fire protection in Kentucky and the bills are a way to do something for them, Montell said.

BR 137 would allow certified volunteer firefighters a $600 tax deduction for 2007, $1,000 for 2008 and $2,000 per year beginning in 2009.

“This is the bill I'm most excited about,” he said. “If I can only push through one bill out of the two, this will be it.”

That's because the benefits of the bill go directly to the volunteer firefighters, Montell said, adding it's been difficult for the state to keep experienced volunteers.

These volunteers put in a lot of time to become certified and train throughout the year and don't receive anything for it, he said. Their efforts help homeowners by keeping their home safe and through lower homeowners insurance premiums if there's a station close, he said.

“It's time the state did something for them,” Montell said.

The tax deduction would cost the state a total of $1.56 million when fully implemented, he said.

“I think that's a pretty small price to pay,” Montell said.

A volunteer firefighter must be certified by the Commission on Fire Protection Personnel Standards and Education and have been a volunteer firefighter for the entire year in which the exemption is claimed.

This bill would assist in the recruitment of volunteer firefighters, said Craig Peay, Warren County volunteer fire department coordinator and member of the Gott Volunteer Fire Department. Currently, there are a lot of out-of-pocket costs for volunteers, including equipment, and this deduction might make people more willing to take those on.

“It's definitely a good start,” he said.

Statewide a few years ago, there were 24,000 volunteer firefighters and last year there were 17,500, said Buddy Steele, chief of the Richardsville Volunteer Fire Department.

This tax deduction would put money back into the volunteers' hands quickly and help to recruit and retain volunteers, Steele said. He said with so many more things people can become involved with now, they often don't have as much time for the volunteer fire department.

Richardsville used to have more than 40 active members but now has 25 or 26 members and not all of them are active, he said.

Departments losing members causes the volunteer departments to be more reliant on mutual aid departments, Peay said.

The other bill would allow volunteer fire departments to be reimbursed for the state taxes they pay on fuel to operate their vehicles.

This is something that should have been in effect already, Steele said.

“There's no reason why volunteer fire departments shouldn't be tax-exempt for fuel,” he said.

Currently, the state has a tax of 18.5 cents per gallon on gasoline and 15.5 cents per gallon on diesel fuel.

The additional money from the refunded tax would help fire departments save budget money and that additional money could be used to help reimburse firefighters for their cost to travel to calls or for other uses, Steele said.

Richardsville Fire Department spends an average of $700 a month on fuel using primarily diesel fuel, he said.

Volunteer firefighters throughout Warren County have tight budgets, so any savings through a refund on fuel tax would help the departments, Peay said.

Savings of just $1,200 a year would allow the department to replace the turnout gear for one firefighter. The Gott Fire Department uses an average of 150 to 175 gallons of fuel per month with the larger departments in the county using considerably more, he said.

Most states already exempt volunteer fire department vehicles from state fuel taxes and they are exempt from federal fuel taxes, Montell said.

“It would be a simple change to make,” he said. “They already receive a form when they purchase gas that includes the federal exemption; all they would have to do is check the state exemption box on that form.”

This bill is designed simply to help departments with tight budgets, Montell said.

Steele said he's also been working on a proposal that would allow volunteer firefighters to build a retirement fund during their time as an active volunteer.

There are millions of dollars turned back in to the State Fire Commission and that money can't be spent without new programming, he said. A retirement system would be a new program.

“A retirement plan for volunteer firefighters may only pay a few hundred dollars a month but it would be something for their future,” Steele said.

The legislature would have to support the idea, Steele said. It would cost no additional tax dollars and be paid through the insurance collections already given to the fire commission.