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SF 593

1st Engrossment - 85th Legislature (2007 - 2008) Posted on 12/15/2009 12:00am

KEY: stricken = removed, old language.
underscored = added, new language.

Current Version - 1st Engrossment

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A bill for an act
relating to taxes; income; providing an income tax credit for telecommuting
conversion expenses and ongoing telecommuting expenses; requiring a report;
proposing coding for new law in Minnesota Statutes, chapter 290.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

new text begin [290.0678] TELECOMMUTING EXPENSES CREDIT.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) For purposes of this section, the following terms
have the meanings given them.
new text end

new text begin (b) "Qualifying employer" means an employer who employs at least ten people
on a full-time basis.
new text end

new text begin (c) "Workplace employee" means a full-time employee who performs all or
substantially all employment duties at the qualifying employer's place of business in
Minnesota.
new text end

new text begin (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 as a workplace employee 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.
new text end

new text begin (e) "Converting employee" means an employee who converts from being a
workplace employee to being a telecommuting employee on or after January 1, 2007.
new text end

new text begin (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, office furnishings, and installation
of telephone, cable, or digital subscriber lines (DSL), 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, cable, DSL, or other wireless service
necessary for telecommuting.
new text end

new text begin (g) "Telecommuting expenses" means expenses during the taxable year incurred for
electronic mail, Internet service, and telephone, cellular, cable, DSL, or other wireless
service necessary for telecommuting.
new text end

new text begin Subd. 2. new text end

new text begin Credit allowed; telecommuting conversion expenses. new text end

new text begin A taxpayer who is
a qualifying employer or a converting employee is allowed a credit against the tax due
under this chapter equal to 30 percent of the telecommuting conversion expenses of the
converting employee. The credit may be claimed one time for each converting 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 converting employee.
The maximum credit is $500.
new text end

new text begin Subd. 3. new text end

new text begin Credit allowed; ongoing telecommuting expenses. new text end

new text begin An individual who
is either a qualifying employer or a telecommuting employee is allowed a credit against
the tax imposed under sections 290.06 and 290.091 equal to ten percent of the ongoing
telecommuting expenses of a telecommuting employee. The credit may be claimed by
either the employer or the employee, but only one credit may be claimed in a tax year for
the ongoing telecommuting expenses of each telecommuting employee. The maximum
credit under this subdivision is $100.
new text end

new text begin Subd. 4. new text end

new text begin Allocation; nonresidents and part-year residents. new text end

new text begin For a nonresident or
part-year resident, the credit determined under this section must be allocated based on the
percentage calculated under section 290.06, subdivision 2c, paragraph (e).
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years beginning after
December 31, 2006.
new text end

Sec. 2. new text beginREPORT.
new text end

new text begin The commissioner of revenue must report to the chairs of the house of representatives
and senate committees with primary jurisdiction over tax and employment issues on the
tax impact of section 1 and on the amount claimed as credits by employers and employees
stated separately.
new text end