Bill Text: MN HF969 | 2011-2012 | 87th Legislature | Introduced
Bill Title: Income tax credit provided for telecommuting conversion expenses and ongoing telecommuting expenses.
Sponsorship: Slight Partisan Bill (Republican 3-1)
Status: (Introduced - Dead) 2011-03-09 - Introduction and first reading, referred to Taxes [HF969 Detail]
Download: Minnesota-2011-HF969-Introduced.html
1.2relating to taxation; income; providing an income tax credit for telecommuting
1.3conversion expenses and ongoing telecommuting expenses;proposing coding for
1.4new law in Minnesota Statutes, chapter 290.
1.5BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.6 Section 1. [290.0693] TELECOMMUTING EXPENSES CREDIT.
1.7 Subdivision 1. Definitions. (a) For purposes of this section, the following terms
1.8have the meanings given them.
1.9(b) "Qualifying employer" means an employer who employs at least ten people
1.10on a full-time basis.
1.11(c) "Workplace employee" means a full-time employee who performs all or
1.12substantially all employment duties at the qualifying employer's place of business in
1.13Minnesota.
1.14(d) "Telecommuting employee" means a full-time employee who at least one day
1.15per week uses electronic communications to perform work that ordinarily would be
1.16performed as a workplace employee at the qualifying employer's place of business at the
1.17employee's home or secondary residence or both, thereby eliminating the employee's
1.18physical commute to and from the qualifying employer's place of business.
1.19(e) "Converting employee" means an employee who converts from being a
1.20workplace employee to being a telecommuting employee on or after January 1, 2011.
1.21(f) "Telecommuting conversion expenses" means expenses incurred for purchase
1.22and installation of equipment that facilitates telecommuting, including computer hardware
1.23and software, modems, printers, fax machines, copiers, office furnishings, and installation
1.24of telephone, cable, or digital subscriber lines (DSL), but excludes any such expenses for
2.1items that the employee uses for personal purposes on other than an incidental basis.
2.2"Telecommuting conversion expenses" excludes electronic mail or Internet service
2.3provider fees, and fees for telephone, cellular, cable, DSL, or other wireless service
2.4necessary for telecommuting.
2.5(g) "Ongoing telecommuting expenses" means expenses during the taxable year
2.6incurred for electronic mail, Internet service, and telephone, cellular, cable, DSL, or other
2.7wireless service necessary for telecommuting.
2.8 Subd. 2. Credit allowed; telecommuting conversion expenses. A taxpayer who is
2.9a qualifying employer or a converting employee is allowed a credit against the tax due
2.10under this chapter equal to ten percent of the telecommuting conversion expenses of the
2.11converting employee. The credit may be claimed one time for each converting employee.
2.12The credit may be claimed by either the employer or the employee, but only one credit
2.13may be claimed for the telecommuting conversion expenses of each converting employee.
2.14The maximum credit is $100.
2.15 Subd. 3. Credit allowed; ongoing telecommuting expenses. An individual who
2.16is either a qualifying employer or a telecommuting employee is allowed a credit against
2.17the tax imposed under sections 290.06 and 290.091 equal to ten percent of the ongoing
2.18telecommuting expenses of a telecommuting employee. The credit may be claimed by
2.19either the employer or the employee, but only one credit may be claimed in a tax year for
2.20the ongoing telecommuting expenses of each telecommuting employee. The maximum
2.21credit under this subdivision is $100.
2.22 Subd. 4. Allocation; nonresidents and part-year residents. For a nonresident or
2.23part-year resident, the credit determined under this section must be allocated based on the
2.24percentage calculated under section 290.06, subdivision 2c, paragraph (e).
2.25EFFECTIVE DATE.This section is effective for taxable years beginning after
2.26December 31, 2010.
1.3conversion expenses and ongoing telecommuting expenses;proposing coding for
1.4new law in Minnesota Statutes, chapter 290.
1.5BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.6 Section 1. [290.0693] TELECOMMUTING EXPENSES CREDIT.
1.7 Subdivision 1. Definitions. (a) For purposes of this section, the following terms
1.8have the meanings given them.
1.9(b) "Qualifying employer" means an employer who employs at least ten people
1.10on a full-time basis.
1.11(c) "Workplace employee" means a full-time employee who performs all or
1.12substantially all employment duties at the qualifying employer's place of business in
1.13Minnesota.
1.14(d) "Telecommuting employee" means a full-time employee who at least one day
1.15per week uses electronic communications to perform work that ordinarily would be
1.16performed as a workplace employee at the qualifying employer's place of business at the
1.17employee's home or secondary residence or both, thereby eliminating the employee's
1.18physical commute to and from the qualifying employer's place of business.
1.19(e) "Converting employee" means an employee who converts from being a
1.20workplace employee to being a telecommuting employee on or after January 1, 2011.
1.21(f) "Telecommuting conversion expenses" means expenses incurred for purchase
1.22and installation of equipment that facilitates telecommuting, including computer hardware
1.23and software, modems, printers, fax machines, copiers, office furnishings, and installation
1.24of telephone, cable, or digital subscriber lines (DSL), but excludes any such expenses for
2.1items that the employee uses for personal purposes on other than an incidental basis.
2.2"Telecommuting conversion expenses" excludes electronic mail or Internet service
2.3provider fees, and fees for telephone, cellular, cable, DSL, or other wireless service
2.4necessary for telecommuting.
2.5(g) "Ongoing telecommuting expenses" means expenses during the taxable year
2.6incurred for electronic mail, Internet service, and telephone, cellular, cable, DSL, or other
2.7wireless service necessary for telecommuting.
2.8 Subd. 2. Credit allowed; telecommuting conversion expenses. A taxpayer who is
2.9a qualifying employer or a converting employee is allowed a credit against the tax due
2.10under this chapter equal to ten percent of the telecommuting conversion expenses of the
2.11converting employee. The credit may be claimed one time for each converting employee.
2.12The credit may be claimed by either the employer or the employee, but only one credit
2.13may be claimed for the telecommuting conversion expenses of each converting employee.
2.14The maximum credit is $100.
2.15 Subd. 3. Credit allowed; ongoing telecommuting expenses. An individual who
2.16is either a qualifying employer or a telecommuting employee is allowed a credit against
2.17the tax imposed under sections 290.06 and 290.091 equal to ten percent of the ongoing
2.18telecommuting expenses of a telecommuting employee. The credit may be claimed by
2.19either the employer or the employee, but only one credit may be claimed in a tax year for
2.20the ongoing telecommuting expenses of each telecommuting employee. The maximum
2.21credit under this subdivision is $100.
2.22 Subd. 4. Allocation; nonresidents and part-year residents. For a nonresident or
2.23part-year resident, the credit determined under this section must be allocated based on the
2.24percentage calculated under section 290.06, subdivision 2c, paragraph (e).
2.25EFFECTIVE DATE.This section is effective for taxable years beginning after
2.26December 31, 2010.
