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. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Traffic Reduction 
Through Technology Act of 2006’’. 
SEC. 2. CREDIT FOR TELEWORKING. 
(a) IN GENERAL.—Subpart B of part IV of sub-
chapter A of chapter 1 of the Internal Revenue Code of 
1986 (relating to other credits) is amended by inserting 
after section 30C the following new section: 
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‘‘SEC. 30D. CREDIT FOR TELEWORKING. 
‘‘(a) GENERAL RULE.—There shall be allowed as a 
credit against the tax imposed by this chapter for any tax-
able year an amount equal to the telework tax credit. 
‘‘(b) TELEWORK TAX CREDIT.—For purposes of this 
section— 
‘‘(1) QUALIFIED EMPLOYER.—In the case of a 
qualified employer, the telework tax credit is an 
amount equal to the sum of— 
‘‘(A) $1,000 per qualified employee who 
teleworks 5 days a week, 
‘‘(B) $800 per qualified employee who 
teleworks 4 days a week, 
‘‘(C) $600 per qualified employee who 
teleworks 3 days a week, 
‘‘(D) $400 per qualified employee who 
teleworks 2 days a week, plus 
‘‘(E) $200 per qualified employee who 
teleworks 1 day a week. 
‘‘(2) QUALIFIED EMPLOYEE.—In the case of a 
qualified employee, the telework tax credit is $250. 
‘‘(c) LIMITATION PER QUALIFIED EMPLOYER.—In 
the case of a qualified employer, the amount of the 
telework tax credit for a taxable year shall not exceed 
$15,000. 
‘‘(d) DEFINITIONS.—For purposes of this section— 
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‘‘(1) QUALIFIED EMPLOYER.—The term ‘quali-
fied employer’ means an employer who employs 1 or 
more qualified employees. 
‘‘(2) QUALIFIED EMPLOYEE.—The term ‘quali-
fied employee’ means an individual— 
‘‘(A) who is employed by the individual’s 
employer for not less than 6 months during the 
taxable year, 
‘‘(B) who performs services for such em-
ployer under a teleworking arrangement during 
the taxable year, 
‘‘(C) whose traditional worksite is located 
not less than 20 miles from the individual’s res-
idence, and 
‘‘(D) who has not been treated as a quali-
fied employee with respect to such employer 
during a preceding taxable year. 
‘‘(3) TELEWORKING ARRANGEMENT.—The term 
‘teleworking arrangement’ means an arrangement 
under which an employee teleworks for an employer 
not less than 1 day per week. 
‘‘(4) TELEWORK.—The term ‘telework’ means 
to perform work functions, using electronic informa-
tion and communication technologies, thereby reduc-
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ing or eliminating the physical commute to and from 
the traditional worksite.’’. 
(b) CLERICAL AMENDMENT.—The table of sections 
for subpart B of part IV of subchapter A of chapter 1 
of the Internal Revenue Code of 1986 is amended by in-
serting after the item relating to section 30C the following 
new item: 
‘‘Sec. 30D. Credit for teleworking.’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2006. 
Æ 
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