hb194_LC_18_4336S_rcs

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05 LC 18 4336S

House Bill 194 (RULES COMMITTEE SUBSTITUTE)

By: Representatives Martin of the 47th, Burkhalter of the 50th, Amerson of the 9th, Royal of the 171st, Ashe of the 56th, and others

A BILL TO BE ENTITLED
AN ACT

To amend Article 2 of Chapter 7 of Title 48 of the Official Code of Georgia Annotated, relating to the imposition, rate, and computation of income tax, so as to provide for income tax credits with respect to teleworking for a limited period of time; to provide for definitions; to provide for conditions, limitations, and exclusions; to provide for powers, duties, and authority of the state revenue commissioner with respect to the foregoing; to provide an effective date; to provide for applicability; to repeal conflicting laws; and for other purposes.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:

SECTION 1.

Article 2 of Chapter 7 of Title 48 of the Official Code of Georgia Annotated, relating to the imposition, rate, and computation of income tax, is amended by adding a new Code section immediately following Code Section 48-7-29.8, to be designated Code Section 48-7-29.9, to read as follows:

"48-7-29.9.

(a) As used in this Code section, the term:

(1) 'Eligible telework expenses' means expenses incurred during the taxable year pursuant to a telework agreement, up to a limit of $1,500.00 for each participating employee, to enable a participating employee to begin to telework, which expenses are not otherwise the subject of an exclusion from income claimed by the taxpayer. Such expenses shall include, but not be limited to, expenses paid or incurred to purchase computers, computer related hardware and software, modems, data processing equipment, telecommunications equipment, high-speed Internet connectivity equipment, computer security software and devices, and all related delivery, installation, and maintenance fees. Such expenses shall not include replacement costs for computers, computer related hardware and software, modems, data processing equipment, telecommunications equipment, or computer security software and devices at the principal place of business when that equipment is relocated to the telework site. Such expenses may be incurred only once per employee. Such expenses may be incurred directly by the employer on behalf of the participating employee or directly by the participating employee.

(2) 'Employer' means any employer upon whom an income tax is imposed by this article.

(3) 'Participating employee' means an employee who has entered into a telework agreement with his or her employer. This term shall not include an individual who is self-employed or an individual who ordinarily spends a majority of his or her workday at a location other than the employeŕs principal place of business.

(4) 'Telework' means to perform normal and regular work functions on a workday that ordinarily would be performed at the employeŕs principal place of business at a different location, thereby eliminating or substantially reducing the physical commute to and from that employeŕs principal place of business. This term shall not include home based businesses, extensions of the workday, or work performed on a weekend or holiday.

(5) 'Telework agreement' means an agreement signed by the employer and the participating employee that defines the terms of a telework arrangement, including the number of days per year the participating employee will telework and any restrictions on the place from which the participating employee will telework.

(6) 'Telework assessment' means an optional assessment leading to the development of policies and procedures necessary to implement a formal telework program, including but not limited to a workforce profile, a telework program business case and plan, a detailed accounting of the purpose, goals, and operating procedures of the telework program, methodologies for measuring telework program activities and success, and a deployment schedule for increasing telework activity.

(b) For taxable years beginning on or after January 1, 2006, and ending on or prior to December 31, 2008, an employer shall be allowed a state income tax credit against the tax imposed by this chapter for a percentage of eligible telework expenses incurred in the tax year. The amount of such credit shall be calculated as follows:

(1) The credit shall be equal to 100 percent of the eligible telework expenses incurred pursuant to a telework agreement requiring the participating employee to telework at least 12 days per month if the employeŕs principal place of business is located in an area designated by the United States Environmental Protection Agency as a nonattainment area under the federal Clear Air Act, 42 U.S.C. Section 7401 et seq.;

(2) The credit shall be equal to 75 percent of the eligible telework expenses incurred pursuant to a telework agreement requiring the participating employee to telework at least 12 days per month; or

(3) The credit shall be equal to 25 percent of the eligible telework expenses incurred pursuant to a telework agreement requiring the participating employee to telework at least five days per month.

(c)(1) In addition to the credit provided by subsection (b) of this Code section, an employer conducting a telework assessment shall be allowed a credit in the year of implementation of the employeŕs formal telework program against the tax imposed by this article for 100 percent of the cost, up to a maximum credit of $40,000.00 per employer, of preparing the assessment. The credit provided by this subsection is intended to include program planning expenses, including direct program development and training costs, raw labor costs, and professional consulting fees; the credit shall not include expenses for which a credit is claimed under any other provision of this article. This credit shall be allowed only once per employer.

(2) All telework assessments eligible for a state income tax credit under this subsection shall meet standards for eligibility promulgated by the commissioner.

(d) In no event shall the total amount of any tax credit under this Code section for a taxable year exceed the employeŕs income tax liability. No unused tax credit shall be allowed to be carried forward to apply to the employeŕs succeeding yearś tax liability. No such tax credit shall be allowed the employer against prior yearś tax liability.

(e)(1) On or before October 1 of each year, an employer may submit an application to the commissioner for approval of the tax credit for a taxable year that begins in the next calendar year. Such applications must certify that the employer would not have incurred the eligible telework expenses mentioned therein but for the availability of the tax credit. The commissioner shall review such application and, subject to the limitations provided for in paragraph (2) of this subsection, shall approve such application upon determining that it meets the requirements of this Code section.

(2) In no event shall the total amount of tax credits approved by the commissioner under this Code section in a taxable year exceed:

(A) $2,000,000.00 in 2006;

(B) $5,000,000.00 in 2007; and

(f) On or before January 1, 2008, the commissioner shall conduct an assessment of telework programs conducted under this Code section and shall report to the General Assembly any finding regarding performance measures developed by the commissioner, problems encountered, and recommendations for further implementation of this Code section or amending this Code section.

(g) The commissioner shall promulgate any rules and regulations necessary to implement and administer this Code section."

SECTION 2.

This Act shall become effective upon its approval by the Governor or upon its becoming law without such approval and shall be applicable to taxable years beginning on or after January 1, 2006, and ending for taxable years beginning prior to January 1, 2009.

SECTION 3.

All laws and parts of laws in conflict with this Act are repealed.