Bill Text: VA SB238 | 2012 | Regular Session | Engrossed
Bill Title: Telework expenses tax credit; extended for employers through December 31, 2016.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Passed) 2012-03-22 - Governor: Acts of Assembly Chapter text (CHAP0341) [SB238 Detail]
Download: Virginia-2012-SB238-Engrossed.html
12103523D
Be it enacted by the General Assembly of Virginia: 1. That § 58.1-439.12:07 of the Code of Virginia is amended and reenacted as follows: §58.1-439.12:07. Telework expenses tax credit. A. As used in this section, unless the context requires a different meaning: "Eligible telework expenses" means expenses incurred during the taxable year pursuant to a telework agreement, in an amount up to $1,200 for each participating employee, that enable a participating employee to begin to telework, which expenses are not otherwise the subject of a deduction from income claimed by the employer in any tax year. Such expenses include, but are not limited to, expenses paid or incurred to purchase computers, computer-related hardware and software, modems, data processing equipment, telecommunications equipment, high-speed Internet connectivity equipment, computer security software and devices, and all related delivery, installation, and maintenance fees. Such expenses do not include replacement costs for computers, computer-related hardware and software, modems, data processing equipment, telecommunications equipment, or computer security software and devices at the principal place of business when that equipment is relocated to the telework site. Eligible telework expenses may also include up to a maximum of $20,000 for conducting a telework assessment on or after January 1, 2012. Such costs shall be ineligible for this credit if they are otherwise taken as a deduction by the employer from income in any taxable year. The costs included and allowed to be taken as a credit include program planning costs, which may include direct program development and training costs, raw labor costs, and professional consulting fees. Such costs shall not include those for which a credit is claimed under any other provision of this chapter. The credit for conducting a telework assessment shall be allowed once for each employer meeting the requirements herein. "Employer" means any employer subject to the income tax imposed by this chapter. "Participating employee" means an employee who has entered into a telework agreement with his employer on or after July 1, 2012, in accordance with policies set by the Virginia Department of Rail and Public Transportation. The term shall not include an individual who is self-employed or an individual who ordinarily spends a majority of the workday at a location other than the place where his duties are normally performed. "Telework" means the performance of normal and regular work functions on a workday at a location different from the place where work functions are normally performed and that is within or closer to the participating employee's residence. The term shall not include home-based businesses, extensions of the workday, or work performed on a weekend or holiday. "Telework agreement" means an agreement signed by
the employer and the participating employee, on or after July 1, 2012, but
before January 1, "Telework assessment" means an optional assessment leading to the development of policies and procedures necessary to implement a formal telework program that would qualify the employer for the credit provided in this section, including but not limited to a workforce profile; a telework program business case and plan; a detailed accounting of the purpose, goals, and operating procedures of the telework program; methodologies for measuring telework program activities and success; and a deployment schedule for increasing telework activity. B. For taxable years beginning on or after January 1, 2012,
but before January 1, Such expenses may be incurred (i) only once per participating employee and (ii) directly by the employer on behalf of the participating employee or directly by the participating employee and reimbursed by the employer. C. For purposes of this section, the amount of any credit attributable to a partnership, electing small business corporation (S corporation), or limited liability company shall be allocated to the individual partners, shareholders, or members, respectively, in proportion to their ownership or interest in such business entities. D. The amount of tax credits available to any employer under
this section in any taxable year shall not exceed the employer's tax liability.
No unused tax credit shall be carried forward or carried back against the
employer's tax liability. An employer shall be ineligible for a tax credit
pursuant to this section if such employer claims a credit based on the jobs,
wages, or other expenses for the same employee under any other E. An employer seeking to claim a tax credit provided herein
shall submit a reservation application to the Tax Commissioner for tentative
approval of the credit between September 1 and October 31 of the year preceding
the F. In no event shall the aggregate amount of tax credits
approved by the Tax Commissioner exceed $1 million annually G. Actions of the Tax Commissioner relating to the approval or denial of applications for reservations of tax credits pursuant to this section shall be exempt from the provisions of the Administrative Process Act (§ 2.2-4000 et seq.). 2. That the provisions of this act shall be effective for taxable years beginning on or after January 1, 2012. [ 3. That the Department of Taxation shall submit a report concerning the tax credit set forth in §58.1-439.12:07 of the Code of Virginia to the House Committee on Appropriations, the House Committee on Finance, and the Senate Committee on Finance no later than November 15 of the year immediately preceding any taxable year or calendar year in which the credit is due to expire. Such report shall include (i) the number of persons, corporations, or other classes of taxpayers claiming the tax credit in each of the immediately preceding five years, (ii) the aggregate amount of credits claimed in each of the preceding five years by each class of taxpayers, (iii) the average amount of the credit claimed by each class of taxpayers in each of the preceding five years, (iv) the average amount of taxes paid, after claiming any credits or deductions, by each class of taxpayers claiming the tax credit in each of the preceding five years, (v) any noted trends in the use of the tax credit, and (vi) any other information deemed relevant by the Department of Taxation. All other agencies of the Commonwealth involved in the administration of the tax credit shall provide any information requested by the Department of Taxation to assist in the formulation of the report. ] |