as introduced - 85th Legislature (2007 - 2008) Posted on 12/15/2009 12:00am
A bill for an act
relating to taxes; income; providing an income tax credit for telecommuting
equipment expenses; proposing coding for new law in Minnesota Statutes,
chapter 290.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
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(a) For purposes of this section, the following terms
have the meanings given them.
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(b) "Qualifying employer" means an employer who employs at least ten people on
a full-time basis in Minnesota.
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(c) "Workplace employee" means a full-time employee who performs all or
substantially all employment duties at the qualifying employer's place of business.
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(d) "Telecommuting employee" means a full-time employee who at least one day per
week uses electronic communications to perform work that ordinarily would be performed
at the qualifying employer's place of business at the employee's home or secondary
residence or both, thereby eliminating the employee's physical commute to and from the
qualifying employer's place of business.
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(e) "Qualifying employee" means an employee who converts from being a workplace
employee to being a telecommuting employee on or after January 1, 2006.
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(f) "Telecommuting conversion expenses" means expenses incurred for purchase and
installation of equipment that facilitates telecommuting, including computer hardware and
software, modems, printers, fax machines, copiers, and office furnishings, but excludes
any such expenses for items that the employee uses for personal purposes on other than
an incidental basis. Telecommuting conversion expenses excludes electronic mail or
Internet service provider fees, and fees for telephone, cellular, or other wireless service
necessary for telecommuting.
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A taxpayer is allowed a credit against the tax due under
this chapter equal to ten percent of the telecommuting conversion expenses of a qualifying
employee. The credit may be claimed one time for each qualifying employee. The credit
may be claimed by either the employer or the employee, but only one credit may be
claimed for the telecommuting conversion expenses of each qualifying employee. The
maximum credit is $500.
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The credit for the taxable year is limited to the tax imposed
under this chapter for the taxable year reduced by the sum of the nonrefundable credits
allowed under this chapter.
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This section is effective for taxable years beginning after
December 31, 2006.
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