[Congressional Bills 103th Congress] [From the U.S. Government Publishing Office] [H.R. 3923 Introduced in House (IH)] 103d CONGRESS 2d Session H. R. 3923 To amend the Internal Revenue Code of 1986 to provide tax credits to businesses with employees performing services in their residences or in telecommuting centers. _______________________________________________________________________ IN THE HOUSE OF REPRESENTATIVES March 1, 1994 Mr. Baker of California (for himself, Mr. Doolittle, and Mr. Levy) introduced the following bill; which was referred to the Committee on Ways and Means _______________________________________________________________________ A BILL To amend the Internal Revenue Code of 1986 to provide tax credits to businesses with employees performing services in their residences or in telecommuting centers. Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, SECTION 1. SHORT TITLE. This Act may be cited as the ``Telecommuting Tax Credit Act of 1994''. SEC. 2. TELECOMMUTING TAX CREDIT. (a) General Rule.--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 thereof the following new section: ``SEC. 30A. TELECOMMUTING TAX CREDIT. ``(a) General Rule.--In the case of an employer with 1 or more telecommuting employees, there shall be allowed as a credit against the tax imposed by this chapter for the taxable year an amount equal the per employee credit determined for each such employee. ``(b) Per-Employee Credit.--For purposes of this section-- ``(1) Residential telecommuting employees.--The per employee credit determined for any residential telecommuting employee for any taxable year is an amount which bears the same ratio to $500 as-- ``(A) the average number of hours per week for which the employee performs services (which are part of the employee's normal workweek) in the employee's residence, bears to ``(B) 40. In no event shall the amount determined under the preceding sentence exceed $500. ``(2) Other telecommuting employees.--The per employee credit determined for any telecommuting employee (other than a residential telecommuting employee) for any taxable year is an amount which bears the same ratio to $250 as-- ``(A) the average number of hours per week for which the employee performs services (which are part of the employee's normal workweek) in a telecommuting center, bears to ``(B) 40. In no event shall the amount determined under the preceding sentence exceed $250. ``(3) Special rule for part-year employees.--In the case of an employee who was not employed by the taxpayer at all times during the taxable year, the dollar amounts set forth in paragraph (1) or (2), whichever is applicable, shall be reduced by a percentage based on the portion of the taxable year during which the employee was not employed by the taxpayer. ``(c) Definitions.--For purposes of this section-- ``(1) Telecommuting employee.--The term `telecommuting employee' means any employee of the taxpayer if, pursuant to an agreement between the taxpayer and the employee, such employee performs services which are part of the employee's normal workweek-- ``(A) in such employee's residence, or ``(B) in a telecommuting center but only if such center is closer to such employee's residence than the central worksite of the employer. ``(2) Residential telecommuting employee.--The term `residential telecommuting employee' means any telecommuting employee described in paragraph (1)(A). ``(3) Telecommuting center.--The term `telecommuting center' means any facility where employees of 2 or more employers or separate business units of the same employer perform services if such facility is separate from the central worksites of such employers or business units. ``(d) Limitation.--The credit allowed by subsection (a) for any taxable year shall not exceed 50 percent of the sum of-- ``(1) 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, and ``(2) the minimum tax imposed by section 55 for the taxable year.'' (b) Clerical Amendment.--The table of sections for subpart B of part IV of subchapter A of chapter 1 of such Code is amended by adding at the end thereof the following new item: ``Sec. 30A. Telecommuting tax credit.'' (c) Effective Date.--The amendments made by this section shall apply to taxable years beginning after the date of the enactment of this Act. <all>