I 
111TH CONGRESS 
1ST SESSION H. R. 4348 
To amend the Internal Revenue Code of 1986 to allow a credit against 
income tax for expenses incurred in teleworking. 
IN THE HOUSE OF REPRESENTATIVES 
DECEMBER 16, 2009 
Mr. WITTMAN 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 income tax for expenses incurred in tele-
working. 
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 ‘‘Telework Tax Incen-
tive Act’’. 
SEC. 2. FINDINGS. 
The Congress finds as follows: 
(1) Federal, State and local governments spend 
billions of dollars annually on the Nation’s transpor-
tation needs. 
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(2) Congestion on the Nation’s roads resulted 
in costs of over $87,000,000 in 2007, in extra time 
and fuel used, to drivers in the Nation’s 439 urban 
areas, an increase of more than 50 percent over the 
previous decade. 
(3) On average, on-road-vehicles contributed 
31.9 percent of nitrogen oxide emissions in 2008. 
(4) It was recently reported that if the 40 per-
cent of United States workers who have jobs that 
are compatible with teleworking worked at home half 
of the time, that would save 450 million barrels of 
oil, reduce greenhouse gases by 84 million tons, and 
reduce highway maintenance costs by over $3 billion 
annually. 
(5) The average American daily commute is 51 
minutes for a round-trip (a total of 204 hours, or 
8.5 days, per year.) 
(6) The National Science Foundation found 
that teleworking increased employee productivity by 
87 percent and the Census Bureau reported that 73 
percent of teleworkers felt they accomplished more 
work on telework days than when they were in the 
office. 
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(7) In 2003, 77 million workers used a com-
puter at work, accounting for 55.5 percent of total 
employment. 
(8) In recent years, studies performed in the 
United States have shown a marked expansion of 
teleworking, with 76 percent of private sector em-
ployers now providing technical support for remote 
workers, an increase of 27 percent over 2007. 56 
percent of Federal IT professionals indicated that 
their agencies provide technical support for tele-
workers. 
SEC. 3. 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 foreign tax credit, etc.) is amended by 
adding at the end the following new section: 
‘‘SEC. 30E. TELEWORKING CREDIT. 
‘‘(a) ALLOWANCE OF CREDIT.—In the case of an eli-
gible taxpayer, there shall be allowed as a credit against 
the tax imposed by this chapter for the taxable year an 
amount equal to the qualified teleworking expenses paid 
or incurred by the taxpayer during such year. 
‘‘(b) MAXIMUM CREDIT.— 
‘‘(1) PER
TELEWORKER
LIMITATION.—The 
credit allowed by subsection (a) for a taxable year 
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with respect to qualified teleworking expenses paid 
or incurred by or on behalf of an individual tele-
worker shall not exceed $1,000. 
‘‘(2) REDUCTION
FOR
TELEWORKING
LESS 
THAN FULL YEAR.—In the case of an individual who 
is in a teleworking arrangement for less than a full 
taxable year, the amount referred to in paragraph 
(1) shall be reduced by an amount which bears the 
same ratio to $1,000 as the number of months in 
which such individual is not in a teleworking ar-
rangement bears to 12. For purposes of the pre-
ceding sentence, an individual shall be treated as 
being in a teleworking arrangement for a month if 
the individual is subject to such arrangement for any 
day of such month. 
‘‘(c) DEFINITIONS.—For purposes of this section— 
‘‘(1) ELIGIBLE TAXPAYER.—The term ‘eligible 
taxpayer’ means— 
‘‘(A) in the case of an individual, an indi-
vidual who performs services for an employer 
under a teleworking arrangement, and 
‘‘(B) in the case of an employer, an em-
ployer for whom employees perform services 
under a teleworking arrangement. 
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‘‘(2) TELEWORKING ARRANGEMENT.—The term 
‘teleworking arrangement’ means an arrangement 
under which an employee teleworks for an employer 
not less than 75 days per year. 
‘‘(3) QUALIFIED
TELEWORKING
EXPENSES.— 
The term ‘qualified teleworking expenses’ means ex-
penses paid or incurred under a teleworking ar-
rangement for furnishings and electronic information 
equipment which are used to enable an individual to 
telework. 
‘‘(4) TELEWORK.—The term ‘telework’ means 
to perform work functions, using electronic informa-
tion and communication technologies, thereby reduc-
ing or eliminating the physical commute to and from 
the traditional worksite. 
‘‘(d) LIMITATION BASED ON AMOUNT OF TAX.— 
‘‘(1) LIABILITY FOR TAX.—The credit allowable 
under subsection (a) for any taxable year shall not 
exceed the excess (if any) of— 
‘‘(A) the regular tax for the taxable year, 
reduced by the sum of the credits allowable 
under subpart A and the preceding sections of 
this subpart, over 
‘‘(B) the tentative minimum tax for the 
taxable year. 
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‘‘(2) CARRYFORWARD OF UNUSED CREDIT.—If 
the amount of the credit allowable under subsection 
(a) for any taxable year exceeds the limitation under 
paragraph (1) for the taxable year, the excess shall 
be carried to the succeeding taxable year and added 
to the amount allowable as a credit under subsection 
(a) for such succeeding taxable year. 
‘‘(e) SPECIAL RULES.— 
‘‘(1) BASIS
REDUCTION.—The basis of any 
property for which a credit is allowable under sub-
section (a) shall be reduced by the amount of such 
credit (determined without regard to subsection (d)). 
‘‘(2) RECAPTURE.—The Secretary shall, by reg-
ulations, provide for recapturing the benefit of any 
credit allowable under subsection (a) with respect to 
any property which ceases to be property eligible for 
such credit. 
‘‘(3) 
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 the portion of the cost of any property taken into 
account under section 179. 
‘‘(4) ELECTION
TO
NOT
TAKE
CREDIT.—No 
credit shall be allowed under subsection (a) for any 
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expense if the taxpayer elects to not have this sec-
tion apply with respect to such expense. 
‘‘(5) DENIAL OF DOUBLE BENEFIT.—No deduc-
tion or credit (other than under this section) shall 
be allowed under this chapter with respect to any ex-
pense which is taken into account in determining the 
credit under this section.’’. 
(b) TECHNICAL AMENDMENT.—Subsection (a) of 
section 1016 of the Internal Revenue Code of 1986 is 
amended by striking ‘‘and’’ at the end of paragraph (36), 
by striking the period at the end of paragraph (37) and 
inserting ‘‘; and’’, and by adding at the end the following 
new paragraph: 
‘‘(38) to the extent provided in section 30E(e), 
in the case of amounts with respect to which a credit 
has been allowed under section 30E.’’. 
(c) 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 add-
ing at the end the following new item: 
‘‘Sec. 30E. Teleworking credit.’’. 
(d) EFFECTIVE DATE.—The amendments made by 
this section shall apply to amounts paid or incurred after 
the date of the enactment of this Act, in taxable years 
ending after such date. 
Æ 
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