Traffic Reduction Through Technology Act of 2006

Traffic Reduction Through Technology Act of 2006 - Amends the Internal Revenue Code to allow certain employers and employees a tax credit for teleworking. Bases the amount of the tax credit for employers on the number of days during the week their employees telework. Limits the annual credit amount for employers to $15,000 and for employees to $250.

[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5154 Introduced in House (IH)]







109th CONGRESS
  2d Session
                                H. R. 5154

 To amend the Internal Revenue Code of 1986 to allow a credit against 
                          tax for teleworking.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             April 6, 2006

  Mr. Pombo 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 
                          tax for teleworking.

    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 ``Traffic Reduction Through Technology 
Act of 2006''.

SEC. 2. CREDIT FOR TELEWORKING.

    (a) In General.--Subpart B of part IV of subchapter A of chapter 1 
of the Internal Revenue Code of 1986 (relating to other credits) is 
amended by inserting after section 30C the following new section:

``SEC. 30D. CREDIT FOR TELEWORKING.

    ``(a) General Rule.--There shall be allowed as a credit against the 
tax imposed by this chapter for any taxable year an amount equal to the 
telework tax credit.
    ``(b) Telework Tax Credit.--For purposes of this section--
            ``(1) Qualified employer.--In the case of a qualified 
        employer, the telework tax credit is an amount equal to the sum 
        of--
                    ``(A) $1,000 per qualified employee who teleworks 5 
                days a week,
                    ``(B) $800 per qualified employee who teleworks 4 
                days a week,
                    ``(C) $600 per qualified employee who teleworks 3 
                days a week,
                    ``(D) $400 per qualified employee who teleworks 2 
                days a week, plus
                    ``(E) $200 per qualified employee who teleworks 1 
                day a week.
            ``(2) Qualified employee.--In the case of a qualified 
        employee, the telework tax credit is $250.
    ``(c) Limitation Per Qualified Employer.--In the case of a 
qualified employer, the amount of the telework tax credit for a taxable 
year shall not exceed $15,000.
    ``(d) Definitions.--For purposes of this section--
            ``(1) Qualified employer.--The term `qualified employer' 
        means an employer who employs 1 or more qualified employees.
            ``(2) Qualified employee.--The term `qualified employee' 
        means an individual--
                    ``(A) who is employed by the individual's employer 
                for not less than 6 months during the taxable year,
                    ``(B) who performs services for such employer under 
                a teleworking arrangement during the taxable year,
                    ``(C) whose traditional worksite is located not 
                less than 20 miles from the individual's residence, and
                    ``(D) who has not been treated as a qualified 
                employee with respect to such employer during a 
                preceding taxable year.
            ``(3) Teleworking arrangement.--The term `teleworking 
        arrangement' means an arrangement under which an employee 
        teleworks for an employer not less than 1 day per week.
            ``(4) Telework.--The term `telework' means to perform work 
        functions, using electronic information and communication 
        technologies, thereby reducing or eliminating the physical 
        commute to and from the traditional worksite.''.
    (b) 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 inserting after the item relating to section 30C the 
following new item:

``Sec. 30D. Credit for teleworking.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2006.
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