New Jersey A1774 - Provides corporation business tax and gross income tax credits for certain business telecommuting program development and implementation costs.

Great bill for promoting Telecommuting - 

This bill provides a corporation business tax and a gross income tax credit for certain costs incurred by businesses in the development and implementation of telecommute programs which eliminate or substantially reduce an employee's physical commute to and from an employer's principal place of business. Under the provisions of the bill, taxpayers are allowed a credit in an amount equal to a percentage of the eligible telecommute expenses, up to a limit of $1,200, for each employee participating in a telecommute program. For purposes of the credit, percentages are determined based on the number of days per month participating employees telecommute; taxpayers are eligible to receive 50% of the eligible telecommute expenses incurred under a telecommute agreement which requires participating employees to telecommute not less than five days per month, and are eligible to receive 100% of the eligible telecommute expenses incurred under a telecommute agreement which requires participating employees to telecommute not less than 12 days per month. Eligible telecommute expenses are defined by the bill as expenses incurred by taxpayers which enable participating employees to telecommute. They include, but are not limited to expenses paid or incurred to purchase: computers, computer related hardware and software, modems, data processing equipment, telecommunications equipment, high-speed Internet connectivity equipment, computer security software and devices, and any associated delivery, installation, or maintenance charges and fees. In addition, the bill provides a separate tax credit, of not more than $20,000 per taxpayer, for certain costs incurred by taxpayers in the performance of a telecommute assessment. Under the bill, a telecommute assessment includes, but is not limited to: a workforce profile, a telecommute program business case and plan, a detailed accounting of the purpose, goals, and operating procedures of the telecommute program, methodologies for measuring telecommute program activities and achievements, and a schedule for increasing telecommute activity. The bill caps the total, combined amount of credits awarded to taxpayers over the two year period the credits remain in effect. Under the corporation business tax, the aggregate amount of credits approved for all taxpayers may not exceed $2,000,000 for credits earned in privilege periods beginning on or after January 1, 2010, but before January 1, 2011, and may not exceed $2,000,000 for credits earned in privilege periods beginning on or after January 1, 2011, but before January 1, 2012. Similarly, under the gross income tax, the aggregate amount of credits may not exceed $2,000,000 for credits earned in taxable years beginning on or after January 1, 2010, but before January 1, 2011, and may not exceed $2,000,000 for credits earned in taxable years beginning on or after January 1, 2011, but before January 1, 2012. In either year, if the credit amounts under the corporation business tax or the gross income tax exceed the maximum aggregate limits, the bill stipulates that the credits must be allocated among taxpayers on a pro rata basis. Collectively, the credits provided by this bill are intended to address concerns related to global warming and to encourage the conservation of energy in the State of New Jersey. Currently, one of the largest sources of pollution in this State, and throughout the United States, is derived from motor vehicle emissions. Telecommuting reduces traffic congestion and motor vehicle emissions, and provides energy savings in on-site heating and cooling, lighting, motor vehicle repair and maintenance, and highway construction and maintenance. The reduction in travel time for employees who telecommute also helps limit the demand for fossil fuels and encourages related cost savings associated with its consumption.