IA SF165

Authorizes municipalities (cities, counties, townships, benefited fire districts) to establish length of service award programs for volunteer firefighters, volunteer emergency medical care providers, and reserve peace officers as tax-deferred benefits under Internal Revenue Code section 457(e)(11)

Creates a length of service award program grant fund under the Department of Revenue, with $1.5 million appropriated from the sports wagering receipts fund for fiscal year beginning July 1, 2025

Provides ongoing funding by transferring amounts necessary to maintain a $1.5 million unencumbered balance in the grant fund from the sports wagering receipts fund each fiscal year beginning July 1, 2026

Establishes a dollar-for-dollar matching grant program, with state grants not to exceed $300 per award recipient per year, available to municipalities that create length of service award programs

Requires municipal governing bodies to adopt program guidelines covering eligibility requirements, vesting requirements, and distribution requirements in consultation with fire and police department leadership