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 expenses incurred to set-up their program, and the expenses incurred to enable each individual new teleworker.
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 credit up to $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 incur expenses during 2010 to add new teleworkers to their formal programs can earn the tax credit for those expenses. The employer can claim up to $1,200 once per new teleworking employee. 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.
8) How do you qualify for the full $1,200 credit per new teleworker created?
• You must be located in an area designated as non-attainment
• The participating employee must be new to teleworking and enter into a formal telework agreement in 2010.
• The participating employee must telework a minimum of 12 days a month. If employee teleworks at least 5 days a month, but not 12, they still qualify for a tax credit of up to $300 for the taxable year.
• Eligible Telework Expenses of $1,200 or more (eligible telework expenses are capped at $1,200 per participating employee) to enable employee to telework must be incurred in 2010.
• Tax credit amounts must be approved by Department of Revenue (complete and submit Form IT-TW between September 1 and October 31 of the year preceding the calendar year for which the tax credit is to be earned).
9) What tax credits are available for employers in attainment areas?
• Up to $20,000 for a telework assessment, which must be claimed in the calendar year of implementation of the employer’s formal telework program.
• Up to $900 for new teleworkers created as long as they telework at least 12 days a month (employee must be new to teleworking and enter into a formal telework agreement).
• Up to $300 for new teleworkers created as long as they telework at least 5 days a month (employee must be new to teleworking and enter into a formal telework agreement).
10) What is the difference between attainment & non-attainment?
A non-attainment area is an area that does not meet one or more of the National Ambient Air Quality Standards for the criteria pollutants designated in the Clean Air Act.
11) 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 Gwinnett
Bartow Hall
Bibb Heard (partial)
Carroll Henry
Catoosa Monroe (partial)
Cherokee Murray (partial)
Clayton Newton
Cobb Paulding
Coweta Putnam (partial)
DeKalb Rockdale
Douglas Spalding
Fayette Walker
Floyd Walton
Forsyth
Fulton
12) 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 up to $1,200 per new teleworker credit.
13) 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.
14) 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.
15) If $2,000 is spent on business expenses per teleworker and only $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.
16) 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
17) 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
Please contact Crystal Clark for assistance with your program.
cclark@atlantadowntown.com or 404-658-1877.
