With talk of gas prices climbing, the idea of telecommuting is becoming more and more appealing to many employees. However, it can be hard for employees to convince their employer that this is an effective alternative to working at an office. Thanks to the Georgia Telework Tax Credit, employers now have added incentives to set up telework programs. Telework is defined as performance of normal and regular work functions on a workday that ordinarily would be performed at the employer’s principal place of business at a different location, thereby eliminating or substantially reducing the physical commute to and from that employer’s principal place of business.
In Georgia, this credit is available for tax years 2008 and 2009 as a nonrefundable credit available against the Georgia corporation income tax for a percentage of eligible “telework” expenses: up to $1,200 per employee and for 100% of the costs of an assessment of the employer’s telework program, up to a maximum credit of $20,000 per employer. The exact amount of the credit calculation will be determined based on factors including number of days per month the employee is working and whether or not the principal place of business is a nonattainment area (where air quality is poor or air pollution is high) as defined by the Environmental Protection Agency. Here is a general breakdown of the credit:
- 100% of eligible expenses if the employee works at least 12 days per month and the primary place of business is a nonattainment area;
- 75% of eligible expenses if the employee works at least 12 days per month, or;
- 25% of eligible expenses if the employee works at least 5 days per month.