H. R. 710
IN THE HOUSE OF REPRESENTATIVES
February 15, 2011
Mr. Wittman introduced the following bill; which was referred to the Committee on Ways and Means
To amend the Internal Revenue Code of 1986 to allow a credit against income tax for expenses incurred in teleworking.
This Act may be cited as the
Telework Tax Incentive
The Congress finds as follows:
Federal, State and local governments spend billions of dollars annually on the Nation’s transportation needs.
Congestion on the Nation’s roads resulted in costs of over $87,000,000 in 2007, in extra time and fuel used, to drivers in the Nation’s 439 urban areas, an increase of more than 50 percent over the previous decade.
On average, on-road-vehicles contributed 31.9 percent of nitrogen oxide emissions in 2008.
It was recently reported that if the 40 percent of United States workers who have jobs that are compatible with teleworking worked at home half of the time, that would save 450 million barrels of oil, reduce greenhouse gases by 84 million tons, and reduce highway maintenance costs by over $3 billion annually.
The average American daily commute is 51 minutes for a round-trip (a total of 204 hours, or 8.5 days, per year).
The National Science Foundation found that teleworking increased employee productivity by 87 percent and the Census Bureau reported that 73 percent of teleworkers felt they accomplished more work on telework days than when they were in the office.
In 2003, 77 million workers used a computer at work, accounting for 55.5 percent of total employment.
In recent years, studies performed in the United States have shown a marked expansion of teleworking, with 76 percent of private sector employers now providing technical support for remote workers, an increase of 27 percent over 2007. Fifty-six percent of Federal IT professionals indicated that their agencies provide technical support for teleworkers.
Credit for teleworking
Subpart B of part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986 (relating to foreign tax credit, etc.) is amended by adding at the end the following new section:
Allowance of credit
In the case of an eligible taxpayer, there shall be allowed as a credit against the tax imposed by this chapter for the taxable year an amount equal to the qualified teleworking expenses paid or incurred by the taxpayer during such year.
Per teleworker limitation
The credit allowed by subsection (a) for a taxable year with respect to qualified teleworking expenses paid or incurred by or on behalf of an individual teleworker shall not exceed $1,000.
Reduction for teleworking less than full year
In the case of an individual who is in a teleworking arrangement for less than a full taxable year, the amount referred to in paragraph (1) shall be reduced by an amount which bears the same ratio to $1,000 as the number of months in which such individual is not in a teleworking arrangement bears to 12. For purposes of the preceding sentence, an individual shall be treated as being in a teleworking arrangement for a month if the individual is subject to such arrangement for any day of such month.
For purposes of this section—
The term eligible taxpayer means—
in the case of an individual, an individual who performs services for an employer under a teleworking arrangement, and
in the case of an employer, an employer for whom employees perform services under a teleworking arrangement.
The term teleworking arrangement means an arrangement under which an employee teleworks for an employer not less than 75 days per year.
Qualified teleworking expenses
The term qualified teleworking expenses means expenses paid or incurred under a teleworking arrangement for furnishings and electronic information equipment which are used to enable an individual to telework.
The term telework means to perform work functions, using electronic information and communication technologies, thereby reducing or eliminating the physical commute to and from the traditional worksite.
Limitation based on amount of tax
Liability for tax
The credit allowable under subsection (a) for any taxable year shall not exceed the excess (if any) of—
the regular tax for the taxable year, reduced by the sum of the credits allowable under subpart A and the preceding sections of this subpart, over
the tentative minimum tax for the taxable year.
Carryforward of unused credit
If the amount of the credit allowable under subsection (a) for any taxable year exceeds the limitation under paragraph (1) for the taxable year, the excess shall be carried to the succeeding taxable year and added to the amount allowable as a credit under subsection (a) for such succeeding taxable year.
The basis of any property for which a credit is allowable under subsection (a) shall be reduced by the amount of such credit (determined without regard to subsection (d)).
The Secretary shall, by regulations, provide for recapturing the benefit of any credit allowable under subsection (a) with respect to any property which ceases to be property eligible for such credit.
Property used outside United States, etc., not qualified
No credit shall be allowed under subsection (a) with respect to any property referred to in section 50(b) or with respect to the portion of the cost of any property taken into account under section 179.
Election to not take credit
No credit shall be allowed under subsection (a) for any expense if the taxpayer elects to not have this section apply with respect to such expense.
Denial of double benefit
No deduction or credit (other than under this section) shall be allowed under this chapter with respect to any expense which is taken into account in determining the credit under this section.
Subsection (a) of section 1016 of the Internal Revenue
Code of 1986 is amended by striking
and at the end of paragraph
(36), by striking the period at the end of paragraph (37) and inserting
; and, and by adding at the end the following new
to the extent provided in section 30E(e), in the case of amounts with respect to which a credit has been allowed under section 30E.
The table of sections for subpart B of part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986 is amended by adding at the end the following new item:
Sec. 30E. Teleworking credit.
The amendments made by this section shall apply to amounts paid or incurred after the date of the enactment of this Act, in taxable years ending after such date.