ARIZONA HOUSE OF REPRESENTATIVES SECOND REGULAR SESSION - 1998

__________________________________________________________________

__X__ For Committee on ENVIRONMENT

_____ For Committee on ______________________________________

_____ For Caucus and COW

_____ As Passed the House

__________________________________________________________________

Bill Summary for HB 2692 telecommuting income tax credit Sponsors: Voss, Weason, Allen et al

HB 2692 grants an income tax credit to individuals and business beginning 1/1/99 equal to purchase and installation costs of personal computer hardware and software, modems and telecommunications equipment that enable employees to work at home. Recurring expenses including installation charges for additional telecommunication connections also qualify for the credit.

Provisions:

The credit is not given for the purchase of telecommuting equipment for exclusive use in the workplace or if the taxpayer's business is located at home.

The credit is in lieu of any other credit, deduction or subtraction that is allowed to the taxpayer.

Excess credit can be carried forward for the next five consecutive years' tax liability.

Co-owners, shareholders, and partners may claim only their pro rata share of the credit allowed.

Taxpayers are required to add any telecommuting expenses deducted as a trade or business expense under section 162 of the Internal Revenue Code for which a credit is claimed to Arizona adjusted gross income calculations.

Prepared by: Dan Shein, Juhani Platt

hb2692.env 2/18/98 bh

Click here to return to the A.L.I.S. Home Page.