Bill offers $500 tax break for telecommuters

Telecommuters and their employers could get a $500 tax credit under legislation introduced in the House Tuesday. The telework tax credit bill, sponsored by Rep. Frank Wolf, R-Va., would provide a tax credit for the costs incurred by either an employee or an employer to set up a work station in an employee's home. Employees must work at home at least 75 days a year to be eligible for the tax credit. Wolf introduced similar legislation in the 106th Congress. "The benefits of teleworking are enormous," Wolf said. "The goal of the tax credit is to provide another incentive for individuals, and their employers, to consider teleworking." Last month Wolf met with agency and department heads and insisted that officials at the Office of Personnel Management require federal managers to develop viable telecommuting options. Wolf was responsible for adding language setting telecommuting goals to the fiscal 2001 Transportation appropriations bill. By law, federal agencies must establish policies allowing eligible employees to telecommute. Agencies have until April 2 to complete and return a form describing the agency's telecommuting policy to OPM.