[Congressional Record Volume 147, Number 33 (Tuesday, March 13, 2001)]
[Senate]
[Pages S2222-S2223]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. SANTORUM:
  S. 521. 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.
  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, along with 
Representative Frank Wolf in the House of Representatives, to provide a 
$500 tax credit for telework. The legislation provides 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 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.
  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.
  A number of groups have previously 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 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 Denver 
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.
  On July 14, 2000 the President signed legislation which included an 
additional $2 million to continue efforts in the 5 pilot cities, 
including Philadelphia, to market, implement, and evaluate strategies 
for awarding telecommuting, emissions reduction, and pollution credits 
established through the National Telecommuting and Air Quality Act.

[[Page S2223]]

  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 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 may 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?
  I urge my colleagues to consider cosponsoring this legislation which 
promotes telework and helps encourage additional employee choices for 
the workplace.
                                 ______