Rural and Small Town Telework Tax Credit Act of 2009

Rural and Small Town Telework Tax Credit Act of 2009 - Amends the Internal Revenue Code to allow employers a tax credit for the cost of installing and maintaining qualified teleworking equipment (i.e., electronic and communications equipment used to eliminate the commute to and from traditional worksites). Limits the amount of such credit to the lesser of $1,000 for each teleworking employee or $50,000.

[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3627 Introduced in House (IH)]

111th CONGRESS
  1st Session
                                H. R. 3627

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 rural and small town America.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           September 22, 2009

Mr. Perriello 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 employers a credit 
 against income tax for the cost of teleworking equipment and expenses 
                    in rural and small town America.

    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 ``Rural and Small Town Telework Tax 
Credit Act of 2009''.

SEC. 2. EMPLOYER CREDIT FOR TELEWORKING EQUIPMENT AND EXPENSES.

    (a) In General.--Subpart D of part IV of subchapter A of chapter 1 
of the Internal Revenue Code of 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) $1,000 with respect to each qualified teleworking 
        employee 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.
            ``(2) Qualified teleworking employee.--The term `qualified 
        teleworking employee' means a teleworking employee who 
        teleworks in any county or group of counties that--
                    ``(A) is not designated by the Office of Management 
                and Budget as either a micropolitan statistical area or 
                metropolitan statistical area,
                    ``(B) is designated by the Office of Management and 
                Budget as a micropolitan statistical area, or
                    ``(C) is designated by the Office of Management and 
                Budget as a metropolitan statistical area with a 
                population of no more than 200,000 people.
            ``(3) 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.
            ``(4) Telework.--The term `telework' means to perform work 
        functions using electronic information and communication 
        technologies and thereby reducing 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 treated 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 regulations, 
        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 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 deduction shall be 
        allowed under this chapter with respect to any expense which is 
        taken into account in determining 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 striking ``plus'' at the end of paragraph (34), 
by striking the period at the end of paragraph (35) and inserting ``, 
plus'', and by adding at the end of following new paragraph:
            ``(36) in the case of an employer, the teleworking credit 
        determined under section 45R(a).''.
    (d) Clerical Amendment.--The table of sections for subpart D of 
part IV of subchapter A of chapter 1 of such Code is amended by adding 
at the end the following new item:

``Sec. 45R. Teleworking equipment credit.''.
    (e) Effective Date.--The amendments made by this section shall 
apply to property placed in service, and expenses paid or incurred, 
after the date of the enactment of this Act in taxable years ending 
after such date.
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