1.1                          A bill for an act 
  1.2             relating to taxes; providing income tax credits for 
  1.3             telework assessments and telecommuting expenses; 
  1.4             amending Minnesota Statutes 2000, section 290.06, by 
  1.5             adding a subdivision; proposing coding for new law in 
  1.6             Minnesota Statutes, chapter 290. 
  1.7   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.8      Section 1.  Minnesota Statutes 2000, section 290.06, is 
  1.9   amended by adding a subdivision to read: 
  1.10     Subd. 29.  [CREDIT FOR TELEWORK ASSESSMENTS.] (a) A 
  1.11  taxpayer may take a credit against the tax due under sections 
  1.12  290.02, 290.03, 290.091, and 290.0921, equal to 50 percent of 
  1.13  the expense incurred by the taxpayer to prepare a telework 
  1.14  assessment of employee telecommuting.  The credit may not exceed 
  1.15  the lesser of (1) $....... for each Minnesota-based employment 
  1.16  position considered in the analysis, or (2) ........ 
  1.17     (b) The telework assessment must include the following 
  1.18  components: 
  1.19     (1) a workforce profile that identifies: 
  1.20     (i) the different types of workers based on a deployment 
  1.21  strategy; 
  1.22     (ii) the number of days per week that each job can be 
  1.23  performed from a remote location; and 
  1.24     (iii) the level of technology necessary to support jobs 
  1.25  that can be performed from a remote location; 
  1.26     (2) a business case for telework that includes: 
  2.1      (i) identification of cost-effective investments that would 
  2.2   allow more jobs to be performed from a remote location; 
  2.3      (ii) a cost benefit analysis that uses various deployment 
  2.4   rates and reports fixed and variable cost savings such as space 
  2.5   reduction and other overhead savings; and 
  2.6      (iii) identification of cost-effective investments that 
  2.7   would mitigate barriers to telework; and 
  2.8      (3) a multiyear deployment schedule for increasing telework.
  2.9      A taxpayer must complete the telework assessment and 
  2.10  implement the deployment schedule in order to claim the credit.  
  2.11  A taxpayer may claim the credit for one taxable year.  If the 
  2.12  credit exceeds the tax due under this chapter, the excess may be 
  2.13  carried forward to the next five taxable years. 
  2.14     <b>[EFFECTIVE DATE.]</b> This section is effective for taxable 
  2.15  years beginning after December 31, 2001. 
  2.16     Sec. 2.  [290.0681] [CREDIT FOR TELECOMMUTING EXPENSES.] 
  2.17     Subdivision 1.  [CREDIT ALLOWED.] An employer who has 
  2.18  qualified for and claimed the credit in section 290.06, 
  2.19  subdivision 29, is allowed a credit against the tax imposed by 
  2.20  this chapter for expenses paid or incurred during the taxable 
  2.21  year equal to: 
  2.22     (1) 100 percent of start-up telecommuting expenses incurred 
  2.23  to set up an employee to begin telecommuting, for up to $100 per 
  2.24  employee; and 
  2.25     (2) 100 percent of ongoing telecommuting expenses incurred 
  2.26  to assist an employee to continue telecommuting, for up to $50 
  2.27  per month per employee. 
  2.28     Subd. 2.  [DEFINITIONS.] (a) "Employer" has the meaning 
  2.29  given in section 290.92, subdivision 1, paragraph (4). 
  2.30     (b) "Employee" has the meaning given in section 290.92, 
  2.31  subdivision 1, paragraph (3). 
  2.32     (c) "Telecommuting" means the use of telecommunications by 
  2.33  an employee to perform work functions under circumstances in 
  2.34  which the use of telecommunications reduces or eliminates the 
  2.35  need for the employee to commute for five days per week to a 
  2.36  place of business of the employer that is within Minnesota, 
  3.1   although employees who are telecommuting are not precluded from 
  3.2   traveling to the place of business from time to time on an 
  3.3   incidental basis as required by the employer.  Telecommuting 
  3.4   does not include work functions performed by mobile workers, 
  3.5   sales people, field directors, or others whose work functions 
  3.6   ordinarily do not require them to commute to a place of business 
  3.7   on a regular basis. 
  3.8      (d) "Telecommuting expenses" means expenses incurred by an 
  3.9   employer on behalf of an employee, whether by direct payment or 
  3.10  by reimbursing the employee, for: 
  3.11     (1) telephone line or cable installation or improvement 
  3.12  necessary for telecommuting; 
  3.13     (2) electronic mail or Internet service provider fees; 
  3.14     (3) fees for telephone, cellular, or other wireless service 
  3.15  necessary for telecommuting; and 
  3.16     (4) purchase and installation of new or used computers, fax 
  3.17  machines, modems, telephones, printers, software, copiers, and 
  3.18  any other equipment required for telecommuting. 
  3.19     (e) Telecommuting expenses does not include: 
  3.20     (1) fees for telephone or cable service that is primarily 
  3.21  for the personal use of the employee; or 
  3.22     (2) purchase and installation of new or used computers, fax 
  3.23  machines, modems, telephones, printers, software, copiers, or 
  3.24  other equipment that the employee uses for personal purposes on 
  3.25  other than an incidental basis. 
  3.26     Subd. 3.  [LIMITATIONS; CARRYOVER.] (a) The start-up credit 
  3.27  provided in subdivision 1, clause (1), is allowed only once per 
  3.28  employee. 
  3.29     (b) The ongoing credit provided in subdivision 1, clause 
  3.30  (2), is allowed for two taxable years per employee. 
  3.31     (c) The credit under this section is an employer credit.  
  3.32  An employee is not eligible to claim it. 
  3.33     (d) An employer shall not claim the credit provided in 
  3.34  subdivision 1, clauses (1) and (2), for the same expense. 
  3.35     (e) The credit for the taxable year shall not exceed 
  3.36  liability for tax.  If the amount of the credit determined under 
  4.1   this section for any taxable year exceeds the liability for tax, 
  4.2   the excess shall be a telecommuting credit carryover to each of 
  4.3   the five succeeding taxable years.  The entire amount of the 
  4.4   excess unused credit for the taxable year shall be carried first 
  4.5   to the earliest of the taxable years to which the credit may be 
  4.6   carried and then to each successive year to which the credit may 
  4.7   be carried.  The amount of the unused credit which may be added 
  4.8   under this paragraph shall not exceed the taxpayer's liability 
  4.9   for tax. 
  4.10     <b>[EFFECTIVE DATE.</b>] This section is effective for taxable 
  4.11  years beginning after December 31, 2001.