Employer credit for telecommuting equipment and expenses

(a)

In general

Subpart D of part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986 (relating to business related credits) is amended by adding at the end the following new section:

45Q.

Teleworking equipment

(a)

In general

In the case of an employer, the teleworking credit determined under this section is an amount equal to— (1)the cost of qualified teleworking equipment placed in service by the taxpayer during the taxable year for use by teleworking employees of the taxpayer, and (2)the amount of expenses paid or incurred by the taxpayer during the taxable year to maintain such equipment. (b)

Limitation

The credit determined under this section for a taxable year shall not exceed the lesser of— (1)$500 with respect to each teleworking employee of the employer, or (2)$50,000. (c)

Definitions

For purposes of this section— (1)

Qualified teleworking equipment

The term qualified teleworking equipment means telecommunication equipment— (A)which is used to enable an individual to telework, and (B)the original use of which begins with the taxpayer. (2)

Teleworking employee

The term teleworking employee means any employee of the taxpayer who performs services for the taxpayer under an arrangement under which the employee teleworks for the taxpayer at least 20 hours per week. (3)

Telework

The term telework means to perform work functions using electronic information and communication technologies and thereby reducing or eliminating the physical commute to and from the traditional worksite. (d)

Special rules

(1)

Basis reduction

For purposes of this subtitle, the basis of any property for which a credit is determined under subsection (a) shall be reduced by the amount of credit so determined. (2)

Controlled groups

All persons treated as a single employer under subsection (a) or (b) of section 52 or subsection (m) or (o) of section 414 shall be treated as a one person for purposes of this section. (3)

Recapture

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. (4)

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 expenses related to such property. (5)

Election not to take credit

No credit shall be allowed under subsection (a) for any property or expense if the taxpayer elects to have this section not apply with respect to such property or expense. (6)

Denial of double benefit

No deduction shall be allowed under this chapter with respect to any expense which is taken into account in determining the credit under this section.

(b)

Conforming amendment

Subsection (a) of section 1016 of such Code is amended by striking and at the end of paragraph (35), by striking the period at the end of paragraph (36) and inserting , and, and by adding at the end the following new paragraph:

(37)to the extent provided in section 45Q(d)(1).

(c)

Credit To be part of general business credit

Section 38(b) of such Code is amended by striking plus at the end of paragraph (32), by striking the period at the end of paragraph (33) and inserting , plus, and by adding at the end of following new paragraph:

(34)in the case of an employer, the teleworking credit determined under section 45Q(a).

(d)

Clerical amendment

The table of sections for subpart D of part IV of subchapter A of chapter 1 of such Code is amended by adding at the end the following new item:

Sec. 45Q. Teleworking credit.

(e)

Effective date

The amendments made by this section shall apply to property placed in service, and expenses paid or incurred, after the date of the enactment of this Act in taxable years ending after such date.