I 

109TH CONGRESS 

2D SESSION H. R. 5154 

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

tax for teleworking. 

IN THE HOUSE OF REPRESENTATIVES 

APRIL 6, 2006 

Mr. POMBO 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 a 

credit against tax for teleworking. 

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 ‘‘Traffic Reduction 

5 Through Technology Act of 2006’’. 

6 SEC. 2. CREDIT FOR TELEWORKING. 

7 (a) IN GENERAL.—Subpart B of part IV of sub8 chapter A of chapter 1 of the Internal Revenue Code of 

9 1986 (relating to other credits) is amended by inserting 

10 after section 30C the following new section: 


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1 ‘‘SEC. 30D. CREDIT FOR TELEWORKING. 

2 ‘‘(a) GENERAL RULE.—There shall be allowed as a 

3 credit against the tax imposed by this chapter for any tax4 able year an amount equal to the telework tax credit. 

5 ‘‘(b) TELEWORK TAX CREDIT.—For purposes of this 

6 section— 

7 ‘‘(1) QUALIFIED EMPLOYER.—In the case of a 

8 qualified employer, the telework tax credit is an 

9 amount equal to the sum of— 

10 ‘‘(A) $1,000 per qualified employee who 

11 teleworks 5 days a week, 

12 ‘‘(B) $800 per qualified employee who 

13 teleworks 4 days a week, 

14 ‘‘(C) $600 per qualified employee who 

15 teleworks 3 days a week, 

16 ‘‘(D) $400 per qualified employee who 

17 teleworks 2 days a week, plus 

18 ‘‘(E) $200 per qualified employee who 

19 teleworks 1 day a week. 

20 ‘‘(2) QUALIFIED EMPLOYEE.—In the case of a 

21 qualified employee, the telework tax credit is $250. 

22 ‘‘(c) LIMITATION PER QUALIFIED EMPLOYER.—In 

23 the case of a qualified employer, the amount of the 

24 telework tax credit for a taxable year shall not exceed 

25 $15,000. 

26 ‘‘(d) DEFINITIONS.—For purposes of this section— 


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1 ‘‘(1) QUALIFIED EMPLOYER.—The term ‘quali2 fied employer’ means an employer who employs 1 or 

3 more qualified employees. 

4 ‘‘(2) QUALIFIED EMPLOYEE.—The term ‘quali5 fied employee’ means an individual— 

6 ‘‘(A) who is employed by the individual’s 

7 employer for not less than 6 months during the 

8 taxable year, 

9 ‘‘(B) who performs services for such em10 ployer under a teleworking arrangement during 

11 the taxable year, 

12 ‘‘(C) whose traditional worksite is located 

13 not less than 20 miles from the individual’s res14 idence, and 

15 ‘‘(D) who has not been treated as a quali16 fied employee with respect to such employer 

17 during a preceding taxable year. 

18 ‘‘(3) TELEWORKING ARRANGEMENT.—The term 

19 ‘teleworking arrangement’ means an arrangement 

20 under which an employee teleworks for an employer 

21 not less than 1 day per week. 

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

23 to perform work functions, using electronic informa24 tion and communication technologies, thereby reducVerDate Aug 31 2005 22:12 Apr 13, 2006 Jkt 049200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H5154.IH H5154

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1 ing or eliminating the physical commute to and from 

2 the traditional worksite.’’. 

3 (b) CLERICAL AMENDMENT.—The table of sections 

4 for subpart B of part IV of subchapter A of chapter 1 

5 of the Internal Revenue Code of 1986 is amended by in6 serting after the item relating to section 30C the following 

7 new item: 

‘‘Sec. 30D. Credit for teleworking.’’. 

8 (c) EFFECTIVE DATE.—The amendments made by 

9 this section shall apply to taxable years beginning after 

10 December 31, 2006. 

Æ 


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