I 

111TH CONGRESS 

1ST SESSION H. R. 3627 

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 rural and small town America. 

IN THE HOUSE OF REPRESENTATIVES 

SEPTEMBER 22, 2009 

Mr. PERRIELLO 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 allow employers a credit against income tax for the cost of teleworking equipment and expenses in rural and small town 

America. 

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 ‘‘Rural and Small Town 

5 Telework Tax Credit Act of 2009’’. 


rfrederick on DSKD9S0YB1PROD with BILLS
2 

•HR 3627 IH

1 SEC. 2. EMPLOYER CREDIT FOR TELEWORKING EQUIP2 MENT AND EXPENSES. 

3 (a) IN GENERAL.—Subpart D of part IV of sub4 chapter A of chapter 1 of the Internal Revenue Code of 

5 1986 (relating to business related credits) is amended by 

6 adding at the end the following new section: 

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

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

9 teleworking credit determined under this section is an 

10 amount equal to— 

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

12 placed in service by the taxpayer during the taxable 

13 year, and 

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

15 by the taxpayer during the taxable year to maintain 

16 qualified teleworking equipment. 

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

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

19 ‘‘(1) $1,000 with respect to each qualified tele20 working employee of the employer, or 

21 ‘‘(2) $50,000. 

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

23 ‘‘(1) QUALIFIED TELEWORKING EQUIPMENT.— 

24 The term ‘qualified teleworking equipment’ means 

25 telecommunication equipment— 


rfrederick on DSKD9S0YB1PROD with BILLS
3 

•HR 3627 IH

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

2 the taxpayer to telework, and 

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

4 the taxpayer. 

5 ‘‘(2) QUALIFIED TELEWORKING EMPLOYEE.— 

6 The term ‘qualified teleworking employee’ means a 

7 teleworking employee who teleworks in any county or 

8 group of counties that— 

9 ‘‘(A) is not designated by the Office of 

10 Management and Budget as either a 

11 micropolitan statistical area or metropolitan 

12 statistical area, 

13 ‘‘(B) is designated by the Office of Man14 agement and Budget as a micropolitan statis15 tical area, or 

16 ‘‘(C) is designated by the Office of Man17 agement and Budget as a metropolitan statis18 tical area with a population of no more than 

19 200,000 people. 

20 ‘‘(3) TELEWORKING EMPLOYEE.—The term 

21 ‘teleworking employee’ means any employee of the 

22 taxpayer who performs services for the taxpayer 

23 under an arrangement under which the employee 

24 teleworks for the taxpayer at least 20 hours per 

25 week during the taxable year. 


rfrederick on DSKD9S0YB1PROD with BILLS
4 

•HR 3627 IH

1 ‘‘(4) TELEWORK.—The term ‘telework’ means 

2 to perform work functions using electronic informa3 tion and communication technologies and thereby re4 ducing or eliminating the physical commute to and 

5 from the traditional worksite. 

6 ‘‘(d) SPECIAL RULES.— 

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

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

9 is determined under subsection (a) shall be reduced 

10 by the amount of credit so determined. 

11 ‘‘(2) CONTROLLED GROUPS.—All persons treat12 ed as a single employer under subsection (a) or (b) 

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

14 shall be treated as one person for purposes of this 

15 section. 

16 ‘‘(3) RECAPTURE.—The Secretary shall, by reg17 ulations, provide for recapturing the benefit of any 

18 credit allowable under subsection (a) with respect to 

19 any property which ceases to be property eligible for 

20 such credit during the useful life of such property. 

21 ‘‘(4) PROPERTY USED OUTSIDE UNITED

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

23 allowed under subsection (a) with respect to any 

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

25 to expenses related to such property. 


rfrederick on DSKD9S0YB1PROD with BILLS
5 

•HR 3627 IH

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

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

3 property or expense if the taxpayer elects to have 

4 this section not apply with respect to such property 

5 or expense. 

6 ‘‘(6) DENIAL OF DOUBLE BENEFIT.—No deduc7 tion shall be allowed under this chapter with respect 

8 to any expense which is taken into account in deter9 mining the credit under this section.’’. 

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

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

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

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

14 adding at the end the following new paragraph: 

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

16 45R(d)(1).’’. 

17 (c) CREDIT TO BE PART OF GENERAL BUSINESS

18 CREDIT.—Section 38(b) of such Code is amended by strik19 ing ‘‘plus’’ at the end of paragraph (34), by striking the 

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

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

22 ‘‘(36) in the case of an employer, the tele23 working credit determined under section 45R(a).’’. 

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

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


rfrederick on DSKD9S0YB1PROD with BILLS
6 

•HR 3627 IH

1 of such Code is amended by adding at the end the fol2 lowing new item: 

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

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

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

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

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

Æ 


rfrederick on DSKD9S0YB1PROD with BILLS