Georgia Telework Tax Credit
Frequently Asked Questions
The Georgia Telework Tax Credit (Code 48-7-29.11) allows qualified employers to receive a tax credit in 2010. Georgia businesses that start or expand a telework program may be eligible for a tax credit for the design, assessment and equipment for their program.
1) How much money is available to businesses that apply for the tax credit? Up to $20,000 for costs related to program development and up to an additional $1,200 per new teleworker is available. 2) How will the $2.5 million be allocated? If the total credit amounts on timely filed applications exceed $2.5 million, then the tax credits will be allocated among the qualifying applicants on a pro rata basis. An applicant would get $0 only if there was a reason to reject the application, but not due to $2.5 million limit. 3) Who should apply? Employers who are currently paying an income tax and will pay GA State income tax for 2010, and who will incur expenses to enable employees to begin teleworking during 2010. Please note, expenses and/or costs included in the teleworking credit cannot be the subject of a deduction from income claimed by the employer in any tax year. 4) When must employers apply? In order to take the tax credit for 2010, applications must be submitted between September 1 and October 31 of 2009. 5) If employers already have a formal telework program but will be adding teleworkers during 2010, could they qualify for the tax credit for the new teleworkers? Yes, employers that add teleworkers in 2010 to their formal programs can still earn the tax credit for new teleworkers. The employer can claim up to the $1,200 tax credit once per new teleworking employee. For each new teleworker to qualify there should be a formal telework agreement signed on or after July 1, 2007. The employer may not claim expenses that will be incurred prior to January 1, 2010. 6) Is there a minimum number of months that an employee has to have been teleworking to qualify as a credit to an employer? For example, if an employer plans to add 10 new teleworkers each month during 2010, would the credit apply to each participating employee? The tax credit requires that employees enter into a long-term telework agreement with employers, and each teleworker must meet the requirements of the statute. There is no specification of minimum number of months in the statute. 7) If an employer applies for the tax credit and has an employee who teleworks more than 12 days per month for several months during 2010, but who then changes assignment and must work at the principle place of business for the last few months of 2010, has the credit been earned for that worker? If the employer meets all the requirements in the statute, and the long-term agreement between the employer and employee has been met, the credit has probably been earned, but the final resolution may be determined by an audit.
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What is the timeline in which equipment needs to be purchased to receive the $1,200 per new teleworker credit? Can I purchase the equipment anytime after July 1, 2007 or do I have to wait until January 1, 2010? The employer may not claim expenses that will be incurred prior to January 1, 2010 for the $1,200 per new teleworker credit.
10) What are "raw labor costs"? Raw labor costs refer to all internal costs that the business incurs to set up and implement the program, including staff time to develop policies and procedures, as well as training of teleworkers and telemanagers. This also includes any consultant fees that are incurred. 11) What if only five new teleworkers are submitted on an application, but more than five new teleworkers end up being added in 2010? Amounts specified on application shall not be increased by the employer after the application is approved by the commissioner. 12) If $2,000 is spent on business expenses per teleworker and only the $1,200 worth of credit is given, can the other $800 be written off as a business expense? In dealing with issues outside the Georgia Telework Tax Credit, one should consult a tax advisor. 13) What area is considered nonattainment? The following counties have been designated by the U.S. Environmental Protection Agency under federal Clean Air Act, 42 U.S.C. Section 7401 as areas of nonattainment: Barrow Bartow Bibb Carroll Catoosa Cherokee Clayton Cobb Coweta DeKalb Douglas Fayette Floyd Forsyth Fulton Gwinnett Hall Heard (partial) Henry Monroe (partial) Murray (partial) Newton Paulding Putnam (partial) Rockdale Spalding Walker Walton
14) Who can I contact at the Department of Revenue with questions? Contact Pamela Goshay at the Georgia Department of Revenue at (404) 417-2441 or Pamela.Goshay@dor.ga.gov 15) How can The Clean Air Campaign’s telework team assist with our telework program? Services offered by The Clean Air Campaign include: Evaluation of your organization’s ability to support teleworking Customized telework policies, agreements and documents On-site training sessions for teleworkers and telemanagers Ongoing guidance and assistance with program evaluation