I 
111TH CONGRESS 
1ST SESSION H. R. 2826 
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 THE HOUSE OF REPRESENTATIVES 
JUNE 11, 2009 
Ms. BEAN (for herself, Mr. CARSON of Indiana, Mr. RODRIGUEZ, Mr. ISRAEL, 
Mr. RYAN of Ohio, Mr. HIMES, and Ms. SHEA-PORTER) 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-
working 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 2009’’. 
SEC. 2. EMPLOYER CREDIT FOR TELEWORKING 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. 45R. TELEWORKING EQUIPMENT CREDIT. 
‘‘(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, and 
‘‘(2) the amount of expenses paid or incurred 
by the taxpayer during the taxable year to maintain 
qualified teleworking 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 employees of 
the taxpayer to telework, and 
‘‘(B) the original use of which begins with 
the taxpayer. 
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‘‘(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 during the taxable year. 
‘‘(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 one person for purposes of this 
section. 
‘‘(3) RECAPTURE.—The Secretary shall, by reg-
ulations, provide for recapturing the benefit of any 
credit allowable under subsection (a) with respect to 
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any property which ceases to be property eligible for 
such credit during the useful life of such property. 
‘‘(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 (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 
45R(d)(1).’’. 
(c) CREDIT TO BE PART OF GENERAL BUSINESS 
CREDIT.—Section 38(b) of such Code is amended by strik-
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