Bill Text: MN HF1141 | 2011-2012 | 87th Legislature | Introduced
Bill Title: Teleworking credit created, and telework expenses sales tax exemption provided.
Spectrum: Moderate Partisan Bill (Republican 4-1)
Status: (Introduced - Dead) 2012-03-26 - Author added Westrom [HF1141 Detail]
Download: Minnesota-2011-HF1141-Introduced.html
1.2relating to taxation; creating a teleworking credit; providing a sales tax
1.3exemption for telework expenses;amending Minnesota Statutes 2010, section
1.4297A.67, by adding a subdivision; proposing coding for new law in Minnesota
1.5Statutes, chapter 290.
1.6BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.7 Section 1. [290.0693] TELEWORKING CREDIT.
1.8 Subdivision 1. Definitions. (a) The terms in this section have the meanings given
1.9them.
1.10(b) "Eligible telework expenses" means expenses incurred during the calendar year
1.11pursuant to a telework agreement, up to a limit of $1,200 for each participating employee,
1.12to enable a participating employee to begin to telework. Eligible expenses:
1.13(1) include, but are not limited to, expenses paid or incurred to purchase computers;
1.14computer-related hardware and software; modems; data processing equipment;
1.15telecommunications equipment; high-speed Internet connectivity equipment; computer
1.16security software and devices; and all related delivery, installation, and maintenance fees;
1.17(2) do not include:
1.18(i) replacement costs for computers, computer-related hardware and software,
1.19modems, data processing equipment, telecommunications equipment, or computer
1.20security software and devices at the principal place of business when that equipment is
1.21relocated to the telework site; and
1.22(ii) expenses for which a credit or subtraction is claimed under any other provision
1.23of this chapter;
1.24(3) may be incurred only once per employee; and
2.1(4) may be incurred directly by the employer on behalf of the participating employee
2.2or directly by the participating employee and subsequently reimbursed by the employer.
2.3(c) "Employer" means any employer subject to tax under this chapter.
2.4(d) "Participating employee" means an employee who has entered into a telework
2.5agreement with the employee's employer on or after July 1, 2011. Participating employee
2.6does not include an individual who is self-employed or an individual who ordinarily
2.7spends a majority of the workday at a location other than the employer's principal place of
2.8business.
2.9(e) "Telework" means to perform normal and regular work functions on a workday
2.10that ordinarily would be performed at the employer's principal place of business at a
2.11different location, thereby eliminating or substantially reducing the physical commute
2.12to and from that employer's principal place of business. Telework shall not include
2.13home-based businesses, extensions of the workday, or work performed on a weekend
2.14or holiday.
2.15(f) "Telework agreement" means an agreement signed by the employer and the
2.16participating employee, on or after July 1, 2011, that defines the terms of a telework
2.17arrangement, including the number of days per year the participating employee will
2.18telework in order to qualify for the credit as provided in subdivision 2, and any restrictions
2.19on the place from which the participating employee will telework.
2.20(g) "Telework assessment" means an optional assessment leading to the development
2.21of policies and procedures necessary to implement a formal telework program that would
2.22qualify the employer for the credit provided in subdivision 2, including but not limited
2.23to a workforce profile; a telework program business case and plan; a detailed accounting
2.24of the purpose, goals, and operating procedures of the telework program; methodologies
2.25for measuring telework program activities and success; and a deployment schedule for
2.26increasing telework activity.
2.27 Subd. 2. Credit allowed. An employer is allowed a tax credit against the tax
2.28imposed by this chapter for a percentage of eligible telework expenses incurred. The
2.29amount of the credit is calculated as follows:
2.30(1) 100 percent of the eligible telework expenses incurred under a telework
2.31agreement requiring the participating employee to telework at least 15 days per month;
2.32(2) 75 percent of the eligible telework expenses incurred under a telework agreement
2.33requiring the participating employee to telework at least ten days per month; or
2.34(3) 25 percent of the eligible telework expenses incurred under a telework agreement
2.35requiring the participating employee to telework at least five days per month.
3.1 Subd. 3. Telework assessment credit. (a) In addition to the credit provided by
3.2subdivision 2, an employer conducting a telework assessment on or after July 1, 2011, is
3.3allowed a credit in the calendar year of implementation of the employer's formal telework
3.4program against the tax imposed by this chapter for 100 percent of the cost of preparing
3.5the assessment, up to a maximum credit of $20,000 per employer. The credit provided
3.6by this subdivision is intended to include program planning expenses, including direct
3.7program development and training costs, raw labor costs, and professional consulting fees.
3.8The credit does not include expenses for which a credit or subtraction is claimed under
3.9any other provision of this chapter. The credit is allowed only once per employer.
3.10(b) All telework assessments eligible for a tax credit under this subdivision shall
3.11meet standards for eligibility adopted by the commissioner.
3.12 Subd. 4. Limitations. The credit for any taxable year must not exceed the
3.13employer's liability for tax. Any unused tax credit may not be carried forward to apply to
3.14the employer's succeeding years' tax liability. The tax credit may not be used against the
3.15employer's prior years' tax liability.
3.16 Subd. 5. Application. (a) An employer seeking to claim a credit provided for
3.17under subdivisions 2 and 3 must submit an application to the commissioner for tentative
3.18approval of the credit between September 1 and October 31 of the year preceding the
3.19calendar year for which the credit is to be earned. The commissioner shall adopt the
3.20rules and forms on which the application is to be submitted. Amounts specified on the
3.21application must not be changed by the employer after the application is approved by the
3.22commissioner. Applications must certify that the employer would not have incurred the
3.23eligible telework expenses but for the availability of the credit. The commissioner shall
3.24review the application and tentatively approve the application upon determining that
3.25it meets the requirements of this section.
3.26(b) The total amount of both credits approved by the commissioner under this section
3.27must not exceed $....... in any calendar year.
3.28(c) The commissioner shall notify each employer of the credits tentatively approved
3.29and allocated to the employer by December 31 of the year in which the application
3.30was submitted. Once the credit application is approved and the amount approved is
3.31communicated to the applicant, the employer may make purchases approved for the credit
3.32at any time during the calendar year following the approval of the application. The
3.33employer may then apply the amount of the approved credit to its liability for the tax
3.34year or years for which the approved application applies. If the employer has a tax year
3.35other than a calendar year and the calendar year expenses are incurred in more than one
4.1taxable year, the credit shall be applied to each taxable year based on when the expenses
4.2were incurred.
4.3 Subd. 6. Public report. The commissioner shall make available a public report
4.4disclosing the employer names claiming the credit under this section and the amounts
4.5of the credits.
4.6EFFECTIVE DATE.This section is effective for taxable years beginning after
4.7December 31, 2011.
4.8 Sec. 2. Minnesota Statutes 2010, section 297A.67, is amended by adding a subdivision
4.9to read:
4.10 Subd. 33. Telework expenses. Telework expenses, as defined in section 290.0693,
4.11subdivision 1, paragraph (b), clause (1), are exempt.
4.12EFFECTIVE DATE.This section is effective for sales and purchases made after
4.13June 30, 2011.
1.3exemption for telework expenses;amending Minnesota Statutes 2010, section
1.4297A.67, by adding a subdivision; proposing coding for new law in Minnesota
1.5Statutes, chapter 290.
1.6BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.7 Section 1. [290.0693] TELEWORKING CREDIT.
1.8 Subdivision 1. Definitions. (a) The terms in this section have the meanings given
1.9them.
1.10(b) "Eligible telework expenses" means expenses incurred during the calendar year
1.11pursuant to a telework agreement, up to a limit of $1,200 for each participating employee,
1.12to enable a participating employee to begin to telework. Eligible expenses:
1.13(1) include, but are not limited to, expenses paid or incurred to purchase computers;
1.14computer-related hardware and software; modems; data processing equipment;
1.15telecommunications equipment; high-speed Internet connectivity equipment; computer
1.16security software and devices; and all related delivery, installation, and maintenance fees;
1.17(2) do not include:
1.18(i) replacement costs for computers, computer-related hardware and software,
1.19modems, data processing equipment, telecommunications equipment, or computer
1.20security software and devices at the principal place of business when that equipment is
1.21relocated to the telework site; and
1.22(ii) expenses for which a credit or subtraction is claimed under any other provision
1.23of this chapter;
1.24(3) may be incurred only once per employee; and
2.1(4) may be incurred directly by the employer on behalf of the participating employee
2.2or directly by the participating employee and subsequently reimbursed by the employer.
2.3(c) "Employer" means any employer subject to tax under this chapter.
2.4(d) "Participating employee" means an employee who has entered into a telework
2.5agreement with the employee's employer on or after July 1, 2011. Participating employee
2.6does not include an individual who is self-employed or an individual who ordinarily
2.7spends a majority of the workday at a location other than the employer's principal place of
2.8business.
2.9(e) "Telework" means to perform normal and regular work functions on a workday
2.10that ordinarily would be performed at the employer's principal place of business at a
2.11different location, thereby eliminating or substantially reducing the physical commute
2.12to and from that employer's principal place of business. Telework shall not include
2.13home-based businesses, extensions of the workday, or work performed on a weekend
2.14or holiday.
2.15(f) "Telework agreement" means an agreement signed by the employer and the
2.16participating employee, on or after July 1, 2011, that defines the terms of a telework
2.17arrangement, including the number of days per year the participating employee will
2.18telework in order to qualify for the credit as provided in subdivision 2, and any restrictions
2.19on the place from which the participating employee will telework.
2.20(g) "Telework assessment" means an optional assessment leading to the development
2.21of policies and procedures necessary to implement a formal telework program that would
2.22qualify the employer for the credit provided in subdivision 2, including but not limited
2.23to a workforce profile; a telework program business case and plan; a detailed accounting
2.24of the purpose, goals, and operating procedures of the telework program; methodologies
2.25for measuring telework program activities and success; and a deployment schedule for
2.26increasing telework activity.
2.27 Subd. 2. Credit allowed. An employer is allowed a tax credit against the tax
2.28imposed by this chapter for a percentage of eligible telework expenses incurred. The
2.29amount of the credit is calculated as follows:
2.30(1) 100 percent of the eligible telework expenses incurred under a telework
2.31agreement requiring the participating employee to telework at least 15 days per month;
2.32(2) 75 percent of the eligible telework expenses incurred under a telework agreement
2.33requiring the participating employee to telework at least ten days per month; or
2.34(3) 25 percent of the eligible telework expenses incurred under a telework agreement
2.35requiring the participating employee to telework at least five days per month.
3.1 Subd. 3. Telework assessment credit. (a) In addition to the credit provided by
3.2subdivision 2, an employer conducting a telework assessment on or after July 1, 2011, is
3.3allowed a credit in the calendar year of implementation of the employer's formal telework
3.4program against the tax imposed by this chapter for 100 percent of the cost of preparing
3.5the assessment, up to a maximum credit of $20,000 per employer. The credit provided
3.6by this subdivision is intended to include program planning expenses, including direct
3.7program development and training costs, raw labor costs, and professional consulting fees.
3.8The credit does not include expenses for which a credit or subtraction is claimed under
3.9any other provision of this chapter. The credit is allowed only once per employer.
3.10(b) All telework assessments eligible for a tax credit under this subdivision shall
3.11meet standards for eligibility adopted by the commissioner.
3.12 Subd. 4. Limitations. The credit for any taxable year must not exceed the
3.13employer's liability for tax. Any unused tax credit may not be carried forward to apply to
3.14the employer's succeeding years' tax liability. The tax credit may not be used against the
3.15employer's prior years' tax liability.
3.16 Subd. 5. Application. (a) An employer seeking to claim a credit provided for
3.17under subdivisions 2 and 3 must submit an application to the commissioner for tentative
3.18approval of the credit between September 1 and October 31 of the year preceding the
3.19calendar year for which the credit is to be earned. The commissioner shall adopt the
3.20rules and forms on which the application is to be submitted. Amounts specified on the
3.21application must not be changed by the employer after the application is approved by the
3.22commissioner. Applications must certify that the employer would not have incurred the
3.23eligible telework expenses but for the availability of the credit. The commissioner shall
3.24review the application and tentatively approve the application upon determining that
3.25it meets the requirements of this section.
3.26(b) The total amount of both credits approved by the commissioner under this section
3.27must not exceed $....... in any calendar year.
3.28(c) The commissioner shall notify each employer of the credits tentatively approved
3.29and allocated to the employer by December 31 of the year in which the application
3.30was submitted. Once the credit application is approved and the amount approved is
3.31communicated to the applicant, the employer may make purchases approved for the credit
3.32at any time during the calendar year following the approval of the application. The
3.33employer may then apply the amount of the approved credit to its liability for the tax
3.34year or years for which the approved application applies. If the employer has a tax year
3.35other than a calendar year and the calendar year expenses are incurred in more than one
4.1taxable year, the credit shall be applied to each taxable year based on when the expenses
4.2were incurred.
4.3 Subd. 6. Public report. The commissioner shall make available a public report
4.4disclosing the employer names claiming the credit under this section and the amounts
4.5of the credits.
4.6EFFECTIVE DATE.This section is effective for taxable years beginning after
4.7December 31, 2011.
4.8 Sec. 2. Minnesota Statutes 2010, section 297A.67, is amended by adding a subdivision
4.9to read:
4.10 Subd. 33. Telework expenses. Telework expenses, as defined in section 290.0693,
4.11subdivision 1, paragraph (b), clause (1), are exempt.
4.12EFFECTIVE DATE.This section is effective for sales and purchases made after
4.13June 30, 2011.
