Apr- Tax Incentives
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April Newsletter
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In This Issue
Recent Blog Posts
New Telework Law Proposed
Motivating Employees in an Un-Motivating Time
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Brandon Dempsey
Jill Adams
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Telework Tax Incentives and Reimbursements
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| As tax time is upon us, we thought it would be helpful to discuss the topic of tax incentives and reimbursements to employers for researching and establishing formal remote work programs. If you have offices and/or employees in specific states offering these incentives, it would be wise to explore the incentives available within those specific states. There is no continuity of incentives from state to state; however, various states are currently offering incentives to employers for remote work programs and looking to expand the current incentives available. SuiteCommute is currently compiling a state by state analysis and will have a formal analysis available soon. The following list is not comprehensive; rather it is a sampling of what is currently available.
The State of Virginia offers up to $35,000 in tax incentives and reimbursements based on the following:
- Laptops for teleworkers
- Computer peripherals for teleworkers (such as printers, all-in-one printer/scanner/fax machines, web cams, and more)
- Broadband Internet access for teleworkers
- Other telecommunications equipment and charges for teleworkers
- Centralized remote connectivity infrastructure (such as computers/server equipment)
- Telecommunications/VOIP Solutions
- Telework Center fees
- Consultant Services (Human Resources assistance, Information Technology assistance; installation of software and hardware; teleworker support; and real estate consolidation assistance)
*Exceptions will be evaluated on a case by case basis. i.e. new technology, equipment, etc.
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Assistance
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Location
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Reimbursement Rate
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Reimbursement Cap
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| Equipment Lease |
Home Site |
80% |
$35,000 per business (not to exceed $3,500 per teleworker) |
| Equipment Lease |
Office Site |
50% |
$10,000 per business |
| Technical / Consultant Assistance |
Home/Office |
100% |
$25,000 per business |
| Space |
Telework Center |
50% |
$10,000 per business |
| MAXIMUM FINANCIAL ASSISTANCE NOT TO EXCEED $35,000* PER BUSINESS |
The State of Georgia offers up to $20,000 in tax incentives and reimbursements for the same items as Virginia. Georgia also offers a tax credit of up to $1,200 per employee if they implement Telework programs. These tax incentives include various industries including Manufacturing, Light Industrial, Warehouse Distribution, Headquarters, Research and Development, Customer Service Centers, Data Centers, and Tourism.
The State of Maryland offers a 25% tax credit to offset the expense of establishing a formal Telework program. They also offer a $500 tax credit to employees for setting up a home office. Maryland is working to expand the current program.
The State of California offers $500 per employee up to various maximum amounts to offset the cost of setting up a formal Telework program. The state varies by county, but on average this reimbursement is what applies. The state has been working to expand the current Telework incentive programs. We anticipate the incentives will be expanded greatly in the near future in California
The State of Colorado is currently looking at expanding their “request” for employers to seriously consider Telework options. The Clean Air groups are promoting more virtual work arrangements for employers. The state is discussing tax incentives to assist with this initiative
The State of Kansas is offering assistance from an ADA perspective to find work from home positions and provide financial assistance to offset the cost of setting up a home office
The State of New York is promoting more remote work options to ease the traffic congestions within various areas of New York. They are also looking at expanding Telework incentives.
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Top 10 States with Telecommuting Incentives
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- Georgia
- California
- Illinois
- Virginia
- Arizona
- New York
- Washington
- Texas
- Conneticut
- New Jersey
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New Telework Law Introduced
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| Last week, the House of Representatives and the Senate introduced the Telework Improvements Act of 2009 – a bill aimed at improving Telework in the Federal government. Representatives Sarbanes (D-MD), Connolly (D-VA), and Wolf (R-VA) introduced the Telework Improvements Act of 2009 in the House of Representatives. Senators Akaka (D-HI) and Voinovich (R-OH) introduced the companion bill in the Senate. This marks the first time that both the Senate and House have introduced simultaneous bills. This will be huge …Click here to read more |
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| As many of our clients and partners know, we are currently developing a members only section of our website. The purpose of this is to further help those organizations who are looking for guidance and assistance in developing their own Remote Work or Telecommuting Program. Our hope, is that through membership, members will have a “One-Stop-Shop” access to information they need to create a solid program. Click here to read more. |
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| Upcoming training, classes, and events. |
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| April 15- Pandemic Seminar and Simulation Exercise: St. Louis, MOMay 20- Integrating Remote Work into your Business Continuity Plan: San Diego, CA
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