Title: AT HOME Act
Policy area: Taxation

Summary:
Assisting Teachers and Home Office Modernization for Employees Act or the AT HOME Act
This bill allows employers who have not more than 150 full-time employees a tax credit for 25% of their qualified remote work expenses. The bill defines qualified remote work expenses as expenses paid or incurred to allow employees to work from a worksite other than a shared office space, that are necessary to allow for continuation of normal business functions, are in response to COVID-19 (i.e., coronavirus disease 2019), and occur after February 15, 2020, and before January 1, 2021. The bill also extends such tax credit to tax-exempt entities.
The bill also allows an income-based tax deduction for remote work expenses.

[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[S. 4436 Introduced in Senate (IS)]

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116th CONGRESS
  2d Session
                                S. 4436

    To provide a tax credit for employers that provide remote work 
   equipment and services to their employees, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             August 4, 2020

 Mr. Young (for himself and Ms. Hassan) introduced the following bill; 
     which was read twice and referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL


 
    To provide a tax credit for employers that provide remote work 
   equipment and services to their employees, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Assisting Teachers and Home Office 
Modernization for Employees Act'' or the ``AT HOME Act''.

SEC. 2. ESTABLISHMENT OF TAX CREDIT FOR EMPLOYERS THAT PROVIDE REMOTE 
              WORK EQUIPMENT AND SERVICES TO THEIR EMPLOYEES.

    (a) In General.--For purposes of section 38 of the Internal Revenue 
Code of 1986, in the case of an eligible entity, the COVID-19 remote 
work credit shall be treated as a credit listed at the end of 
subsection (b) of such section. For purposes of this subsection, the 
COVID-19 remote work credit for any taxable year is an amount equal to 
25 percent of any qualified remote work expenses paid or incurred by 
the eligible entity during such taxable year.
    (b) Definitions.--For purposes of this section--
            (1) Eligible entity.--The term ``eligible entity'' means, 
        with respect to any taxable year, an employer which has not 
        more than 150 full-time equivalent employees (as defined in 
        section 45R(d)(2) of the Internal Revenue Code of 1986) for 
        such taxable year.
            (2) Qualified remote work expense.--
                    (A) In general.--The term ``qualified remote work 
                expense'' means any expense paid or incurred by the 
                eligible entity--
                            (i) for purposes of allowing any employee 
                        of such entity to work from a worksite other 
                        than a shared office space, including the 
                        acquisition, implementation, or other cost 
                        associated with the addition of any qualified 
                        remote work technology;
                            (ii) which is necessary to allow for 
                        continuation of normal business functions of 
                        such entity;
                            (iii) in response to the virus SARS-CoV-2 
                        or coronavirus disease 2019 (COVID-19), or any 
                        Federal, State, or local regulation related to 
                        COVID-19; and
                            (iv) after February 15, 2020, and before 
                        January 1, 2021.
                    (B) Exclusion of existing qualified remote work 
                technology.--The term ``qualified remote work expense'' 
                shall not include any expense paid or incurred by the 
                eligible entity which relates to any qualified remote 
                work technology which was placed in service on or 
                before February 15, 2020.
                    (C) Employee.--For purposes of subparagraph (A), 
                the term ``employee'' shall include--
                            (i) any shareholder in a S corporation; and
                            (ii) any member of a limited liability 
                        company.
                    (D) Limitations.--The total amount of qualified 
                remote work expenses which may be taken into account 
                for purposes of this section--
                            (i) with respect to the eligible entity for 
                        all taxable years shall not exceed $50,000; and
                            (ii) with respect to any employee of such 
                        entity for all taxable years shall not exceed 
                        $2,000.
            (3) Qualified remote work technology.--The term ``qualified 
        remote work technology'' means any equipment (including 
        software, hardware, or product systems), which allow normal 
        business functions from a worksite other than a shared office 
        space.
    (c) Aggregation Rule.--All persons which are treated as a single 
employer under subsections (a) and (b) of section 52 of the Internal 
Revenue Code of 1986 shall be treated as a single employer for purposes 
of this section.
    (d) Phaseout of Credit Amount Based on Number of Employees.--With 
respect to any taxable year, the amount of the credit allowed under 
subsection (a) (as determined without regard to this subsection) shall 
be reduced (but not below zero) by an amount equal to the product of--
            (1) the amount determined under subsection (a); and
            (2) an amount equal to the quotient obtained by dividing--
                    (A) the number of full-time equivalent employees 
                (as defined in section 45R(d)(2) of the Internal 
                Revenue Code of 1986) of the eligible entity in excess 
                of 100 for such taxable year; by
                    (B) 50.
    (e) Credit Made Available to Tax Exempt Entities.--In the case of 
an eligible entity which is an organization described in section 501(c) 
of the Internal Revenue Code of 1986 which is exempt from taxation 
under section 501(a) of such Code, there shall be treated as a credit 
allowable under subpart C of part IV of subchapter A of chapter 1 of 
such Code (and not allowable under subpart D of such part) the lesser 
of--
            (1) the amount of the credit determined under subsection 
        (a) (after application of subsection (d)) with respect to such 
        entity; or
            (2) the amount of the payroll taxes (as defined in section 
        45R(f)(3) of such Code) of such entity during the calendar year 
        in which the taxable year begins.
    (f) Denial of Double Benefit.--No deduction shall be allowed under 
any provision of chapter 1 of the Internal Revenue Code of 1986 with 
respect to any amount taken in account in determining the credit 
allowed to a taxpayer under this section.

SEC. 3. DEDUCTION FOR INDIVIDUALS FOR REMOTE WORK EXPENSES.

    (a) In General.--Section 62(a)(2) of the Internal Revenue Code of 
1986 is amended by adding at the end the following new subparagraph:
                    ``(F) Remote work expenses.--
                            ``(i) In general.--The deductions allowed 
                        by section 162 which consist of expenses paid 
                        or incurred by the taxpayer, in connection with 
                        the performance by him or her of services as an 
                        employee--
                                    ``(I) for purposes of allowing such 
                                taxpayer to work from a worksite other 
                                than a shared office space, including 
                                the acquisition, implementation, or 
                                other cost associated with the addition 
                                of any qualified remote work 
                                technology,
                                    ``(II) which is necessary to allow 
                                for continuation of normal work 
                                functions of such taxpayer,
                                    ``(III) in response to the virus 
                                SARS-CoV-2 or coronavirus disease 2019 
                                (COVID-19), or any Federal, State, or 
                                local regulation related to COVID-19, 
                                and
                                    ``(IV) after February 15, 2020, and 
                                before January 1, 2021.
                            ``(ii) Eligible educator.--In the case of 
                        an eligible educator, the deduction allowed 
                        under clause (i) shall include, in addition to 
                        any deduction allowed to such educator under 
                        subparagraph (D), any expense paid or incurred 
                        by such educator--
                                    ``(I) after March 15, 2020, and 
                                before January 1, 2021, and
                                    ``(II) which is described in clause 
                                (ii) of such subparagraph.
                            ``(iii) Limitation.--The deduction allowed 
                        under clause (i) shall not exceed $150 for any 
                        taxable year.
                            ``(iv) Qualified remote work technology.--
                        For purposes of this subparagraph, the term 
                        `qualified remote work technology' means any 
                        equipment (including software, hardware, or 
                        product systems), which allow normal business 
                        functions from a worksite other than a shared 
                        office space.
                            ``(v) Limitation based on adjusted gross 
                        income.--The amount of the deduction allowed 
                        under clause (i) (determined without regard to 
                        this clause) shall be reduced (but not below 
                        zero) by 1 percent of so much of the taxpayer's 
                        adjusted gross income as exceeds--
                                    ``(I) $150,000 in the case of a 
                                joint return,
                                    ``(II) $112,500 in the case of a 
                                head of household, and
                                    ``(III) $75,000 in the case of a 
                                taxpayer not described in subclause (I) 
                                or (II).''.
    (b) Effective Date.--The amendment made by this section shall apply 
to taxable years beginning after December 31, 2019.
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