[Congressional Record Volume 146, Number 47 (Thursday, April 13, 2000)]
[Senate]
[Pages S2741-S2742]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. SANTORUM:
  S. 2431. A bill to amend the Internal Revenue Code of 1986 to allow a 
credit against income tax for expenses incurred in teleworking; to the 
Committee on Finance.


                       TELEWORK TAX INCENTIVE ACT

 Mr. SANTORUM. Mr. President, today, I rise to introduce 
legislation that would help people who ``telework'' or work from home, 
to receive a tax credit. Teleworkers are people who work a few days a 
week on-line from home by using computers and other information 
technology tools. Nearly 20 million Americans telework today, and 
according to experts, 40 percent of the nation's jobs are compatible 
with telework. At one national telecommunications company, nearly 25 
percent of its workforce works from home at least one day a week. The 
company found positive results in the way of fewer days of sick leave, 
better retention, and higher productivity.
  I am introducing the Telework Tax Incentive Act to provide a $500 tax 
credit for telework. The purpose of my legislation is to provide an 
incentive to encourage more employers to consider telework for their 
employees. Telework should be a regular part of the 21st century 
workplace. The best part of

[[Page S2742]]

telework is that it improves the quality of life for all. Telework also 
reduces traffic congestion and air pollution. It reduces gas 
consumption and our dependency on foreign oil. Telework is good for 
families--working parents have flexibility to meet everyday demands. 
Telework provides people with disabilities greater job opportunities. 
Telework helps fill our nation's labor market shortage. It can also be 
a good option for retirees choosing to work part-time.
  Last fall, a task force on telework initiated by Governor James 
Gilmore of Virginia made a number of recommendations to increase and 
promote telework. One recommendation was to establish a tax credit 
toward the purchase and installation of electronic and computer 
equipment that allow an employee to telework. For example, the cost of 
a computer, fax machine, modem, phone, printer, software, copier, and 
other expenses necessary to enable telework could count toward a tax 
credit, provided the person worked at home a minimum number of days per 
year.
  My legislation would provide a $500 tax credit ``for expenses paid or 
incurred under a teleworking arrangement for furnishings and electronic 
information equipment which are used to enable an individual to 
telework.'' An employee must telework a minimum of 75 days per year to 
qualify for the tax credit. Both the employer and employee are eligible 
for the tax credit, but the tax credit goes to whomever absorbs the 
expense for setting up the at-home worksite.
  I am pleased to work with Congressman Frank Wolf who has introduced 
identical legislation in the House of Representatives, H.R. 3819. A 
number of groups have already endorsed the Telework Tax Incentive Act 
including the International Telework Association and Council (ITAC), 
Covad Communications, National Town Builders Association, Litton 
Industries, Orbital Sciences Corporation, Consumer Electronic 
Association, Capnet, BTG Corporation, Electonic Industries Alliance, 
Telecommunications Industry Association, American Automobile 
Association Mid-Atlantic, Dimensions International Inc., Capunet, 
TManage, Science Applications International Corporation, AT&T, Northern 
Virginia Technology Council, Computer Associates Incorporated, and Dyn 
Corp.
  On October 9, 1999, legislation which I introduced last year in 
coordination with Representative Frank Wolf from Virginia was signed 
into law by the President as part of the annual Department of 
Transportation appropriations bill for Fiscal Year 2000. S. 1521, the 
National Telecommuting and Air Quality Act, created a pilot program to 
study the feasibility of providing incentives for companies to allow 
their employees to telework in five major metropolitan areas including 
Philadelphia, Washington, D.C., and Los Angeles. Houston and Chicago 
have been added as well. I am pleased that the Philadelphia Area Design 
Team has been progressing well with its responsibility of examining the 
application of these incentives to the greater Philadelphia 
metropolitan area. I am excited that this opportunity continues to help 
to get the word out about the benefits of telecommuting for many 
employees and employers.
  Telecommuting improves air quality by reducing pollutants, provides 
employees and families flexibility, reduces traffic congestion, and 
increases productivity and retention rates for businesses while 
reducing their overhead costs. It's a growing opportunity and option 
which we should all include in our effort to maintain and improve 
quality of life issues in Pennsylvania and around the nation. According 
to statistics available from 1996, the Greater Philadelphia area ranked 
number 10 in the country for annual person-hours of delay due to 
traffic congestion. Because of this reality, all options including 
telecommuting should be pursued to address this challenge.
  The 1999 Telework America National Telework Survey, conducted by Joan 
H. Pratt Associates, found that today's 19.6 million teleworkers 
typically work 9 days per month at home at home with an average of 3 
hours per week during normal business hours. In this study, teleworkers 
or telecommuters are defined overall as employees or independent 
contractors who work at least one day per month at home. These research 
findings impact the bottom line for employers and employees. 
Teleworkers seek a blend of job-related and personal benefits to enable 
them to better handle their work and life responsibilities. For 
employers, savings just from less absenteeism and increased employee 
retention total more than $10,000 per teleworker per year. Thus an 
organization with 100 employees, 20 of whom telework, could potentially 
realize a savings of $200,000 annually, or more, when productivity 
gains are added.
  Work is something you do, not someplace you go. There is nothing 
magical about strapping ourselves into a car and driving sometimes up 
to an hour and a half, arriving at a workplace and sitting before a 
computer, when we can access the same information from a computer in 
our homes. Wouldn't it be great if we could replace the evening rush 
hour commute with time spent with the family, or coaching little league 
or other important quality of life matters?
  Mr. President, I urge my colleagues to consider cosponsoring this 
legislation which promotes telework and helps encourage additional 
employee choices for the workplace.
                                 ______