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[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>
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