I 
110TH CONGRESS 
2D SESSION 
H. R. 7009 
To amend the Internal Revenue Code of 1986 to allow employers a credit 
against income tax for the cost of telecommuting equipment and expenses. 
IN THE HOUSE OF REPRESENTATIVES 
SEPTEMBER 23, 2008 
Ms. BEAN (for herself, Mr. ISRAEL, Mr. RYAN of Ohio, Mr. RODRIGUEZ, Ms. 
SHEA-PORTER, and Mr. CARSON) 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 em-
ployers a credit against income tax for the cost of tele-
commuting equipment and expenses. 
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 ‘‘Family Work Flexi-
bility Act of 2008’’. 
SEC. 2. EMPLOYER CREDIT FOR TELECOMMUTING EQUIP-
MENT AND EXPENSES. 
(a) IN GENERAL.—Subpart D of part IV of sub-
chapter A of chapter 1 of the Internal Revenue Code of 
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1986 (relating to business related credits) is amended by 
adding at the end the following new section: 
‘‘SEC. 45Q. TELEWORKING EQUIPMENT. 
‘‘(a) IN GENERAL.—In the case of an employer, the 
teleworking credit determined under this section is an 
amount equal to— 
‘‘(1) the cost of qualified teleworking equipment 
placed in service by the taxpayer during the taxable 
year for use by teleworking employees of the tax-
payer, and 
‘‘(2) the amount of expenses paid or incurred 
by the taxpayer during the taxable year to maintain 
such equipment. 
‘‘(b) LIMITATION.—The credit determined under this 
section for a taxable year shall not exceed the lesser of— 
‘‘(1) $500 with respect to each teleworking em-
ployee of the employer, or 
‘‘(2) $50,000. 
‘‘(c) DEFINITIONS.—For purposes of this section— 
‘‘(1) QUALIFIED TELEWORKING EQUIPMENT.— 
The term ‘qualified teleworking equipment’ means 
telecommunication equipment— 
‘‘(A) which is used to enable an individual 
to telework, and 
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‘‘(B) the original use of which begins with 
the taxpayer. 
‘‘(2) TELEWORKING
EMPLOYEE.—The term 
‘teleworking employee’ means any employee of the 
taxpayer who performs services for the taxpayer 
under an arrangement under which the employee 
teleworks for the taxpayer at least 20 hours per 
week. 
‘‘(3) TELEWORK.—The term ‘telework’ means 
to perform work functions using electronic informa-
tion and communication technologies and thereby re-
ducing or eliminating the physical commute to and 
from the traditional worksite. 
‘‘(d) SPECIAL RULES.— 
‘‘(1) BASIS REDUCTION.—For purposes of this 
subtitle, the basis of any property for which a credit 
is determined under subsection (a) shall be reduced 
by the amount of credit so determined. 
‘‘(2) CONTROLLED GROUPS.—All persons treat-
ed as a single employer under subsection (a) or (b) 
of section 52 or subsection (m) or (o) of section 414 
shall be treated as a one person for purposes of this 
section. 
‘‘(3) RECAPTURE.—The Secretary shall, by reg-
ulations, provide for recapturing the benefit of any 
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credit allowable under subsection (a) with respect to 
any property which ceases to be property eligible for 
such credit. 
‘‘(4) 
PROPERTY
USED
OUTSIDE
UNITED 
STATES, ETC., NOT QUALIFIED.—No credit shall be 
allowed under subsection (a) with respect to any 
property referred to in section 50(b) or with respect 
to expenses related to such property. 
‘‘(5) ELECTION
NOT
TO
TAKE
CREDIT.—No 
credit shall be allowed under subsection (a) for any 
property or expense if the taxpayer elects to have 
this section not apply with respect to such property 
or expense. 
‘‘(6) DENIAL OF DOUBLE BENEFIT.—No deduc-
tion shall be allowed under this chapter with respect 
to any expense which is taken into account in deter-
mining the credit under this section.’’. 
(b) CONFORMING AMENDMENT.—Subsection (a) of 
section 1016 of such Code is amended by striking ‘‘and’’ 
at the end of paragraph (35), by striking the period at 
the end of paragraph (36) and inserting ‘‘, and’’, and by 
adding at the end the following new paragraph: 
‘‘(37) to the extent provided in section 
45Q(d)(1).’’. 
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(c) CREDIT TO BE PART OF GENERAL BUSINESS 
CREDIT.—Section 38(b) of such Code is amended by strik-
ing ‘‘plus’’ at the end of paragraph (32), by striking the 
period at the end of paragraph (33) and inserting ‘‘, plus’’, 
and by adding at the end of following new paragraph: 
‘‘(34) in the case of an employer, the tele-
working credit determined under section 45Q(a).’’. 
(d) CLERICAL AMENDMENT.—The table of sections 
for subpart D of part IV of subchapter A of chapter 1 
of such Code is amended by adding at the end the fol-
lowing new item: 
‘‘Sec. 45Q. Teleworking credit.’’. 
(e) EFFECTIVE DATE.—The amendments made by 
this section shall apply to property placed in service, and 
expenses paid or incurred, after the date of the enactment 
of this Act in taxable years ending after such date. 
Æ 
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