Rep. John Lewis Wants Tax Relief For Volunteers

Press Release

Date: March 18, 2009
Location: Washington, DC

Today, as the U.S. House of Representatives engages in a bi-partisan effort to launch a new era of American service and volunteerism, Rep. John Lewis will speak this morning in support of the Generations Invigorating Volunteerism and Education (GIVE) Act, H.R. 1388, and he will introduce an additional measure to gain tax relief for volunteers.

The GIVE Act would more than triple the number of volunteers, from the current 75,000 to 250,000, and increase the education reward they receive to $5,350 for next year, the same as the maximum Pell Grant scholarship award. The education award would also be linked to match future boosts in the Pell Grant scholarship in order to keep up with rising college costs.

The legislation would also provide new incentives for middle and high school students to volunteer in their communities and create a Summer of Service program to engage students in service, which allows them to earn a $500 education award to be used for college costs.

"In this time of economic turmoil," said Rep. John Lewis, "volunteerism and community service will be a powerful support to neighbors, families and friends who are struggling. The government must do what it can, but we cannot do it all. We need to encourage people to reach out to each other, to help each other as our economy recovers, not weaken their efforts by taxing humanitarian service."

Volunteers are often students who are frequently given an annual stipend as a way to help them meet their basic needs for food, clothing, transportation, and other expenses while they serve. These stipends are small, about $3000-$4000 per year. Passage of the GIVE Act would increase the stipend to $5350 per year. However, unlike over government grants to students, such as Pell or G.I. Grant awards, this stipend is subject to taxes, lessening the value of this financial support for students already living on a subsistence income.

The Segal Americorps Award Education Act, to be introduced today by Rep. John Lewis and Jon Porter would provide tax relief for volunteers, like that of Pell or G.I. Grant awardees. Rep. Lewis will speak on the floor about the bill about approximately 11:30 AM today and encourage his colleagues to support this measure.


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