What's happening
This bill creates tax credits for New York employers with telecommuting employees and for employees' necessary technology purchases from 2019 to 2021.
Why it matters
Encourages formal work-from-home arrangements. by offering tax credits only to employers with written telecommuting agreements, pushing companies to legitimize and standardize remote work practices.
Targets New York residents specifically. , meaning the benefits (and data reporting) focus on in-state employees, which could affect workforce distribution, local economies, and housing patterns.
Directly supports employees’ technology needs. by reimbursing up to $500 annually for necessary tech purchases, reducing the personal financial burden of setting up a home office and potentially improving the quality of telecommuting setups.
Imposes detailed reporting and compliance requirements. on employers to qualify for credits, potentially creating administrative overhead but also ensuring program integrity and providing the state with data on telecommuting trends.
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Who cares
Headline styles
Tax Credit for Remote Work
Plain English, a few words. Used as the page title.
Sponsors
No co-sponsors yet.
History
- Referred to investigations and government operations
Full text
3 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
8248
IN SENATE
April 23, 2018
Introduced by Sen. AVELLA -- read twice and ordered printed, and when printed to be committed to the Committee on Investigations and Government Operations
AN ACT to amend the tax law, in relation to a tax credit for employers whose employees utilize telecommuting and for necessary technology purchases made by telecommuting employees; and providing for the repeal of such provisions upon expiration thereof
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Section 210-B of the tax law is amended by adding a new subdivision 53 to read as follows:
53. Tax credit for employers of telecommuting employees. (a) For periods beginning on or after January first, two thousand nineteen but before January first, two thousand twenty-one, an employer shall be allowed a credit against the tax imposed pursuant to this article in an amount equal to one percent of the salary and wages paid by the employer during the privilege period to a qualified residential telecommuting employee residing in the state during the privilege period.
(b) For purposes of this subdivision:
(1) "Qualified residential telecommuting employee" means a salaried or hourly employee who utilizes telecommuting and who, pursuant to a residential telecommuting work arrangement between the employer and that employee entered into after the effective date of this subdivision regularly performs a majority of the services that are part of that employee's normal workweek in the employee's residence in this state, without making any work-related commute trips on the day or days that the employee is telecommuting and is not directly supervised in the conduct of the employee's duties while at the employee's residence.
(2) "Residential telecommuting work arrangement" means a written contract between the employer and employee defining the responsibilities of the employer and employee with respect to a job allowing residential telecommuting.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD14565-03-8
S. 8248 2
(3) "Telecommuting" means an off-site arrangement that permits an employee to work in the employee's residence for all or part of the workweek.
(c) An employer claiming a credit under this subdivision shall file with the commissioner, on a form provided by the commissioner, for each qualified residential telecommuting employee, the following information at a minimum:
(1) the start date of employment;
(2) the date the employee began working from the employee's residence;
(3) the total number of hours or days worked per workweek;
(4) the number of hours or days per workweek that the employee works from the employee's residence;
(5) total salary or wages paid during the privilege period to the employee; and
(6) any other information deemed necessary by the commissioner to ensure that employers are claiming this credit only for employees that are working from home. A copy of this information required to be filed with the commissioner shall be made available to the qualified residential telecommuting employee and may be provided as part of the statement as to tax withheld on wages required to be furnished by an employer to an employee.
§ 2. Section 606 of the tax law is amended by adding a new subsection (jjj) to read as follows:
(jjj) Tax credit for employers of telecommuting employees. (1) For periods beginning on or after January first, two thousand nineteen but before January first, two thousand twenty-one, an employer shall be allowed a credit against the tax imposed pursuant to this article in an amount equal to one percent of the salary and wages paid by the employer during the privilege period to a qualified residential telecommuting employee residing in the state during the privilege period.
(2) For purposes of this subsection:
(A) "Qualified residential telecommuting employee" means a salaried or hourly employee who utilizes telecommuting and who, pursuant to a residential telecommuting work arrangement between the employer and that employee entered into after the effective date of this subsection regularly performs a majority of the services that are part of that employee's normal workweek in the employee's residence in this state, without making any work-related commute trips on the day or days that the employee is telecommuting and is not directly supervised in the conduct of the employee's duties while at the employee's residence.
(B) "Residential telecommuting work arrangement" means a written contract between the employer and employee defining the responsibilities of the employer and employee with respect to a job allowing residential telecommuting.
(C) "Telecommuting" means an off-site arrangement that permits an employee to work in the employee's residence for all or part of the workweek.
(3) An employer claiming a credit under this subsection shall file with the commissioner, on a form provided by the commissioner, for each qualified residential telecommuting employee, the following information at a minimum:
(A) the start date of employment;
(B) the date the employee began working from the employee's residence;
(C) the total number of hours or days worked per workweek;
(D) the number of hours or days per workweek that the employee works from the employee's residence;
S. 8248 3
(E) total salary or wages paid during the privilege period to the employee; and
(F) any other information deemed necessary by the commissioner to ensure that employers are claiming this credit only for employees that are working from home. A copy of this information required to be filed with the commissioner shall be made available to the qualified residential telecommuting employee and may be provided as part of the statement as to tax withheld on wages required to be furnished by an employer to an employee.
§ 3. Subparagraph (B) of paragraph 1 of subsection (i) of section 606 of the tax law is amended by adding a new clause (xliv) to read as follows: (xliv) Tax credit for employers Amount of credit under of telecommuting employees subdivision fifty-three of under subsection (jjj) section two hundred ten-B
§ 4. Section 606 of the tax law is amended by adding a new subsection (kkk) to read as follows:
(kkk) Telecommuting employee technology purchase credit. (1) Allowance of credit. (A) A taxpayer who is a qualified residential telecommuting employee as defined in subparagraph one of paragraph (b) of subdivision fifty-three of section two hundred ten-B of this chapter shall be allowed a credit as hereinafter provided, against the tax imposed by this article. The amount of the credit shall be up to five hundred dollars annually for qualified technology purchases necessary to perform his or her job.
(B) The commissioner, in consultation with the director of the office of information technology services, shall promulgate rules and regulations by December thirty-first, two thousand eighteen to establish qualifying technology purchases for the purpose of allocating tax credits pursuant to subparagraph (A) of this paragraph. Notwithstanding any other provisions to the contrary in the state administrative procedure act, such rules and regulations may be adopted on an emergency basis if necessary to meet such December thirty-first, two thousand eighteen deadline.
(2) Application of credit. If the amount of the credit allowed under this subsection for any taxable year shall exceed the taxpayer's tax for such year, the excess shall be treated as an overpayment of tax to be credited or refunded in accordance with the provisions of section six hundred eighty-six of this article, provided, however, that no interest shall be paid thereon.
(3) Proof of claim. The commissioner may require a qualified taxpayer to furnish proof of his or her qualified technology purchases in support of his or her claim for credit under this subsection.
§ 5. This act shall take effect immediately; provided, however, that this act shall expire and be deemed repealed January 1, 2021; and provided, further, that this act shall apply to taxable years commencing January 1, 2019.
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
Title of bill
An act to amend the tax law, in relation to a tax credit for employers whose employees utilize telecommuting and for necessary technology purchases made by telecommuting employees; and providing for the repeal of such provisions upon expiration thereof
Purpose
This legislation would provide a tax credit for employers who allow their employees to telecommute.
Summary of provisions
Section 1 amends Section 210-B of the tax law by adding new subdivision 53, which would provide for a tax credit for employers of qualified resident telecommuting employees. In order for the employer to get cred- it for an employee who telecommutes, that employee must be able to perform a majority of the serves that are part of that employee's normal workweek in the employee's residence in this state, without making any work-related commute trips on the day or days that the employee is tele- commuting.
Section 2 amends Section 606 of the tax law by adding new subsection 'ccc' that provides that employers can get a tax credit for telecommut- ing employees from January 1, 2019 to January 1, 2021 equal to one percent of the salary and wages paid by the employer during that period to the qualifying employee, and provides for various definitions.
Section 3 amends subparagraph (B) of paragraph 1 of subection (1) of section 606 of the tax law by adding new clause (xliv) which provides of the inclusion of a tax credit for employers of telecommuting employees under subsection 'ccc' of Section 606 of the tax law.
Section 4 further amends Section 606 of the tax law by adding a new subsection 'kkk' which provides a five hundred dollar per year credit to employee to purchase technology necessary to perform his or her job via telecommuting.
Section 5 states that the act shall take effect immediately; provided, however, that this act shall expire and be deemed repealed January 1, 2021; and provided, further, that this act shall apply to taxable years commencing January 1, 2019.
Justification
Telecommuting, also known as teleworking, is an alternative work arrangement in which an employee works outside of the standard office, often from home. Studies have shown that there are various benefits for both employers and employees when well-designed telecommuting programs are established, including increased productivity, reduced turnover, increased morale, and lower employer costs. Further, the federal govern- ment, many states, and numerous municipalities have established tele- working policies that have reduced carbon emissions and road congestion.
This legislation would create a tax credit to incentivize employers in New York to enter into agreements with employees that authorize them to telecommute. In addition, this legislation would provide a tax credit to employees allowing them to purchase the technology necessary to perform their jobs via telecommunication. After three years the tax credit would be automatically repealed, unless further legislative action was taken, giving employers and employees alike suitable time to observe the posi- tive effects that telecommuting can have for both parties, and no longer needing the tax incentive to maintain such programs.
By enacting this legislation, we can effectively incentivize employers to explore the benefits of telecommuting and make New York both a more business and worker friendly state.
Legislative history
New Bill.
Fiscal implications
To be determined.
Effective date
This act shall take effect immediately, with provisions.
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