I was just doing some research on HR 2601 and its companion, S 857, the Supporting Emergency Resonders Volunteer Efforts Act, a.k.a., the SERVE Act (a lot of staff time on the Hill is spent dreaming up clever acronyms like this). The bill would create a $1,000 refundable credit for bona fide volunteer firefighters and members of voluntary emergency medical service organizations. So we already have a federal program for "paid" volunteers, now some in Congress want to create a special tax carve-out for certain volunteers?
I have not been able to find a cost estimate for the outlays it may generate, but I did find this blog post by Len Burman (formerly of the Tax Policy Center) asking some of the same questions that I had:
Should the IRS run a cash grant program for volunteer firefighters and emergency medical workers? Who will certify the bona fides for eligible recipients? And is it still "volunteer" if you're getting $1,000 from the feds to do it? ... Senator Schumer will probably get an award from the Association of Volunteer Firefighters for his support and that will be the end of it. But wouldn't it be great if members of congress applied as much creativity to making the tax system simpler, fairer, and capable of financing the government as they spend on finding new ways to undermine the tax base?
Congress loves using the Tax Code to punish certain activities (like smoking, or managing a tanning salon) and reward others (i.e., having children, buying a home), but each time provisions like these are passed, the tax system gets more complicated.