Tax Relief for First Responder Beneficiaries Act

Overview

• Bill: S.4497
• Session: 119th Congress
• Title: Tax Relief for First Responder Beneficiaries Act
• Introduced: May 12, 2026 by Senators Kirsten Gillibrand (and co-sponsored by Ted Cruz)
• Status: Read twice and referred to the Senate Committee on Finance
• Purpose: Amend the Internal Revenue Code to provide tax relief related to public safety officers’ death benefits and survivor benefits for beneficiaries of public safety officers.

What the bill would change

1) Exclusion of certain compensation for survivors

• Amends IRC §104(a)(6) by replacing the phrase “surviving dependents” with “surviving beneficiaries.”
• Effect: Expands or clarifies the tax exclusion for certain compensation received by survivors of public safety officers, ensuring that the qualifying compensation is available to a broader category labeled as “surviving beneficiaries” rather than only “surviving dependents.”
• Effective date: Applies to taxable years beginning after December 31, 2022.

2) Survivor annuity benefits for public safety officers and their beneficiaries

• Amends IRC §101(h)(1)(A) by striking “a child of such officer” and inserting “a child or a beneficiary of any life insurance policy or benefit plan of such officer.”
• Effect: Broadens eligibility for survivor annuity benefits to include not only children but also beneficiaries of life insurance policies or benefit plans of the officer. This ensures that beneficiaries of life insurance and other officer benefit plans can receive survivor annuity benefits.
• Effective date: Applies to taxable years beginning after December 31, 2022.

Who is affected

• Public safety officers and their beneficiaries, including:
  • Children of public safety officers
  • Beneficiaries of life insurance policies or other benefit plans related to public safety officers
  • Surviving beneficiaries who receive death benefits or annuities under public safety officer programs

Practical impact

• Tax treatment alignment: The bill aims to ensure that death benefits and related survivor benefits paid to beneficiaries of public safety officers are treated favorably for tax purposes (via exclusions) and are accessible to a broader group (not limited to dependents or to children).
• Beneficiary scope: Expands the pool of eligible recipients for survivor annuities and death-benefit tax relief, potentially including spouses, other financial beneficiaries, or named beneficiaries under life insurance or benefit plans.

Timeline and procedural notes

• Date of introduction: May 12, 2026
• Next steps: Referral to the Senate Committee on Finance for consideration, potential markup, and movement through the legislative process (could include companion House actions, amendments, or votes).
• Retroactivity: Provisions specify applicability to taxable years beginning after December 31, 2022, which may have implications for prior-year tax filings and potential administrative considerations for beneficiaries claiming relief.

Summary in plain language

S.4497 seeks to provide tax relief related to public safety officers’ death benefits by:
- Expanding the tax-exclusion language to cover “surviving beneficiaries” rather than only “surviving dependents” for certain compensation.
- Broadening survivor annuity eligibility from only children to include beneficiaries of life insurance policies or benefit plans linked to the officer.
- Applying these changes to tax years starting after December 31, 2022.

The bill is sponsored by Senators Gillibrand and Cruz and, if enacted, would affect how certain death-benefit payments to the families and beneficiaries of public safety officers are taxed.