II 

111TH CONGRESS 

1ST SESSION S. 1291 

To amend the Internal Revenue Code of 1986 to allow employers a credit 

against income tax for the cost of teleworking equipment and expenses. 

IN THE SENATE OF THE UNITED STATES 

JUNE 18, 2009 

Mrs. GILLIBRAND introduced the following bill; which was read twice and 

referred to the Committee on Finance 

A BILL 

To amend the Internal Revenue Code of 1986 to allow employers a credit against income tax for the cost of teleworking equipment and expenses. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Family Work Flexi5 bility Act of 2009’’. 

6 SEC. 2. EMPLOYER CREDIT FOR TELEWORKING EQUIP7 MENT AND EXPENSES. 

8 (a) IN GENERAL.—Subpart D of part IV of sub9 chapter A of chapter 1 of the Internal Revenue Code of 


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1 1986 (relating to business related credits) is amended by 

2 adding at the end the following new section: 

3 ‘‘SEC. 45R. TELEWORKING EQUIPMENT CREDIT. 

4 ‘‘(a) IN GENERAL.—In the case of an employer, the 

5 teleworking credit determined under this section is an 

6 amount equal to— 

7 ‘‘(1) the cost of qualified teleworking equipment 

8 placed in service by the taxpayer during the taxable 

9 year, and 

10 ‘‘(2) the amount of expenses paid or incurred 

11 by the taxpayer during the taxable year to maintain 

12 qualified teleworking equipment. 

13 ‘‘(b) LIMITATION.—The credit determined under this 

14 section for a taxable year shall not exceed the lesser of— 

15 ‘‘(1) $500 with respect to each teleworking em16 ployee of the employer, or 

17 ‘‘(2) $50,000. 

18 ‘‘(c) DEFINITIONS.—For purposes of this section— 

19 ‘‘(1) QUALIFIED TELEWORKING EQUIPMENT.— 

20 The term ‘qualified teleworking equipment’ means 

21 telecommunication equipment— 

22 ‘‘(A) which is used to enable employees of 

23 the taxpayer to telework, and 

24 ‘‘(B) the original use of which begins with 

25 the taxpayer. 


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1 ‘‘(2) TELEWORKING EMPLOYEE.—The term 

2 ‘teleworking employee’ means any employee of the 

3 taxpayer who performs services for the taxpayer 

4 under an arrangement under which the employee 

5 teleworks for the taxpayer at least 20 hours per 

6 week during the taxable year. 

7 ‘‘(3) TELEWORK.—The term ‘telework’ means 

8 to perform work functions using electronic informa9 tion and communication technologies and thereby re10 ducing or eliminating the physical commute to and 

11 from the traditional worksite. 

12 ‘‘(d) SPECIAL RULES.— 

13 ‘‘(1) BASIS REDUCTION.—For purposes of this 

14 subtitle, the basis of any property for which a credit 

15 is determined under subsection (a) shall be reduced 

16 by the amount of credit so determined. 

17 ‘‘(2) CONTROLLED GROUPS.—All persons treat18 ed as a single employer under subsection (a) or (b) 

19 of section 52 or subsection (m) or (o) of section 414 

20 shall be treated as one person for purposes of this 

21 section. 

22 ‘‘(3) RECAPTURE.—The Secretary shall, by reg23 ulations, provide for recapturing the benefit of any 

24 credit allowable under subsection (a) with respect to 


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1 any property which ceases to be property eligible for 

2 such credit during the useful life of such property. 

3 ‘‘(4) PROPERTY USED OUTSIDE UNITED

4 STATES, ETC., NOT QUALIFIED.—No credit shall be 

5 allowed under subsection (a) with respect to any 

6 property referred to in section 50(b) or with respect 

7 to expenses related to such property. 

8 ‘‘(5) ELECTION NOT TO TAKE CREDIT.—No 

9 credit shall be allowed under subsection (a) for any 

10 property or expense if the taxpayer elects to have 

11 this section not apply with respect to such property 

12 or expense. 

13 ‘‘(6) DENIAL OF DOUBLE BENEFIT.—No deduc14 tion shall be allowed under this chapter with respect 

15 to any expense which is taken into account in deter16 mining the credit under this section.’’. 

17 (b) CONFORMING AMENDMENT.—Subsection (a) of 

18 section 1016 of such Code is amended by striking ‘‘and’’ 

19 at the end of paragraph (36), by striking the period at 

20 the end of paragraph (37) and inserting ‘‘, and’’, and by 

21 adding at the end the following new paragraph: 

22 ‘‘(38) to the extent provided in section 

23 45R(d)(1).’’. 

24 (c) CREDIT TO BE PART OF GENERAL BUSINESS

25 CREDIT.—Section 38(b) of such Code is amended by strikVerDate Nov 24 2008 00:42 Jun 19, 2009 Jkt 079200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\S1291.IS S1291

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1 ing ‘‘plus’’ at the end of paragraph (34), by striking the 

2 period at the end of paragraph (35) and inserting ‘‘, plus’’, 

3 and by adding at the end of following new paragraph: 

4 ‘‘(36) in the case of an employer, the tele5 working credit determined under section 45R(a).’’. 

6 (d) CLERICAL AMENDMENT.—The table of sections 

7 for subpart D of part IV of subchapter A of chapter 1 

8 of such Code is amended by adding at the end the fol9 lowing new item: 

‘‘Sec. 45R. Teleworking equipment credit.’’. 

10 (e) EFFECTIVE DATE.—The amendments made by 

11 this section shall apply to property placed in service, and 

12 expenses paid or incurred, after the date of the enactment 

13 of this Act in taxable years ending after such date. 

Æ 


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