S‑0365.2   _____________________________________________

SENATE BILL 5169

           _____________________________________________

State of Washington      57th Legislature     2001 Regular Session

By Senators Jacobsen, Finkbeiner and Eide

Read first time 01/12/2001.  Referred to Committee on Transportation.

_1      AN ACT Relating to tax incentives to encourage telework; adding

_2  a new section to chapter 82.04 RCW; adding a new section to

_3  chapter 82.16 RCW; creating a new section; and providing an

_4  effective date.

_5  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

_6      NEW SECTION. Sec. 1.  The legislature recognizes that commuting

_7  accounts for more trips and miles traveled than any other single

_8  purpose.  The legislature also recognizes that telework has been

_9  found to reduce commute trips and provide flexibility for work-

10  related travel.  Additionally, telework enables employers to allow

11  employees to work outside of urban areas, which reduces urban

12  commute trips while strengthening rural economies.  The legislature

13  further recognizes that telework is a key component in a

14  comprehensive transportation demand management package.

15      NEW SECTION. Sec. 2.  A new section is added to chapter 82.04

16  RCW to read as follows:

17      (1) An employer is allowed a credit against tax due under this

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_1  chapter for telework expenditures, including telework equipment,

_2  installation costs, and telework training.  A credit claimed under

_3  this section may not exceed the amount of tax that would otherwise

_4  be due under this chapter.  The credit must be claimed in the year

_5  in which the expenditure is made.  The employer must make the

_6  expenditure the year in which the credit is approved by the

_7  department.  Approved credit may not be carried over to subsequent

_8  calendar years.  The credit must be claimed by the due date of the

_9  last tax return for the calendar year in which the expenditure is

10  made.  Any unused credit expires.  A refund may not be given in place

11  of a credit.  Total credits claimed by a person under this section

12  and section 3 of this act may not exceed twenty thousand dollars

13  for any tax year.  Expenditures made before the effective date of

14  this act are not eligible for credit.  If a person has used a credit

15  approved under section 3 of this act against tax under chapter

16  82.16 RCW, that same credit cannot be used against tax under this

17  chapter.

18      (2) Application for credits under this section must be made

19  before making a telework expenditure.  Applications must be made to

20  the department in a form and manner as required by the

21  department.  The department shall approve or deny applications for

22  credits using the criteria under this subsection.  The department

23  shall keep a running total of all credits approved under this

24  subsection during each calendar year, and shall deny any credit

25  application that would cause the tabulation for any calendar year

26  to exceed three million dollars.  A person claiming a credit must

27  keep records as necessary for the department to verify eligibility

28  under this section, including records showing that an employee was

29  regularly scheduled to telework from his or her home two or more

30  days per week.

31      (3) The definitions in this subsection apply for the purposes

32  of this section.

33      (a) "Telework" means a work arrangement whereby employees are

34  regularly scheduled two or more days per week to perform the

35  normal duties and responsibilities of their positions at locations

36  other than the traditional workplace, through use of computers or

37  telecommunications.  The term includes only work arrangements made

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_1  by employers for employees and excludes persons who are self-

_2  employed.

_3      (b) "Telework equipment" means:

_4      (i) Desktop and laptop computers, computer-related hardware,

_5  facsimile machines, modems, and similar data processing or

_6  telecommunication equipment used only at an alternate worksite,

_7  including an employee's home for telework purposes; and

_8      (ii) Equipment installed at an employer's place of business

_9  that is used exclusively to provide remote data and voice access

10  to telework employees.

11      (c) "Telework expenditures" means amounts spent, including

12  sales or use taxes paid, to purchase telework equipment or for

13  telework installation costs.  The term includes only expenditures

14  for equipment and services reasonably necessary to facilitate

15  telework.

16      (d) "Telework installation costs" means one-time expenditures

17  for installation of telecommunication access lines at an

18  employee's home for the purpose of telework.

19      NEW SECTION. Sec. 3.  A new section is added to chapter 82.16

20  RCW to read as follows:

21      An employer is allowed a credit against tax due under this

22  chapter for telework expenditures, as defined in section 2 of this

23  act.  A credit may be claimed under this section in the same manner

24  as provided for credits under section 2 of this act. Credits under

25  this section are subject to the same conditions and limitations as

26  credits under section 2 of this act.

27      NEW SECTION. Sec. 4.  This act takes effect October 1, 2001.

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