Tax Relief for First Responder Beneficiaries Act
- Bill Number
- S. 4497
- Origin Chamber
- Senate
- Congress
- 119th Congress, Session 2
- Policy Area
- Taxation
- Status
- Introduced
- Latest Action
- 2026-05-12: Read twice and referred to the Committee on Finance.
- Last Updated
- 2026-06-30T21:59:32Z
AI-Generated Summary
Tax Relief for First Responder Beneficiaries Act (S. 4497)
Purpose
This bill aims to expand tax exemptions for death benefits paid to beneficiaries of public safety officers (such as police, firefighters, and similar first responders) who die in the line of duty, making more types of survivors eligible for tax-free payments.
Key Provisions
- Section 2: Amends Internal Revenue Code (IRC) Section 104(a)(6) to allow tax-free exclusion of certain compensation (like death benefits) for "surviving beneficiaries" instead of just "surviving dependents."
- Section 3: Amends IRC Section 101(h)(1) to extend tax-free survivor annuity benefits to "a child or a beneficiary of any life insurance policy or benefit plan" of the officer, rather than only to a child.
- Both changes apply to tax years beginning after December 31, 2022.
Significant Changes to Existing Law
- Broadens eligibility for tax exclusions from narrow groups (dependents or children only) to a wider range of "beneficiaries," including those named in life insurance policies or benefit plans.
- This removes tax liability on these benefits for more recipients, which was previously limited under current tax rules.
Potential Impacts
- Citizens: Reduces tax burdens for families and designated beneficiaries of fallen public safety officers, providing more financial support without IRS taxation.
- Government Agencies: The IRS and Treasury Department may see slightly lower tax collections from these benefits, but the change is targeted and retroactive to 2023.
- No direct impact on international relations.
Main Stakeholders Affected
- Primary: Beneficiaries of public safety officers (e.g., spouses, children, other named heirs via life insurance or plans).
- Secondary: Public safety officers and their families; IRS (enforcement and revenue); federal budget (minor revenue effects).
Notable Legal, Constitutional, or Political Implications
- Legal: Simplifies tax treatment of line-of-duty death benefits, potentially reducing disputes over beneficiary eligibility; retroactive application may require IRS guidance for past claims.
- Constitutional: None apparent; aligns with Congress's power to set tax policy.
- Political: Bipartisan sponsorship (Sens. Gillibrand and Cruz) highlights broad support for first responder families; referred to Senate Finance Committee for review.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Sen. Gillibrand, Kirsten E. [D-NY]
Cosponsors (1)
Recent Actions
- 2026-05-12: Read twice and referred to the Committee on Finance.
- 2026-05-12: Introduced in Senate
Bill Versions
- Tax Relief for First Responder Beneficiaries Act — issued 2026-05-12 — PDF (2 pages)