Tax Credits for Working from Home

The percentage of the credit for allowed expenditures ranges from 100%, 75% and 25% depending upon whether the business is located in a federal nonattainment area, and the number of telework days per month required by the participating employee’s telework agreement. In addition, the employer will also be allowed a credit for conducting a telework assessment in the year of implementation for 100% of the cost of preparing the assessment, up to a maximum of $20,000 per employer. However, such costs shall not be eligible for the credit if the employer has already deducted such expenses from income in any tax year. The aggregate maximum that can be claimed for this credit is $2 million in 2008 and $2 million in 2009.This credit is only available for taxable years 2008 and 2009 and became effective July 1, 2007. Costs incurred between July 1, 2007 and January 1, 2008 will be treated as being incurred on January 1, 2008. For more information, refer to O.C.G.A § 48-7-29.11. Information gathered from the GA Department of Revenue's website. HESM&A, Inc. or Atlanta IT Pro does not provide tax services and assumes zero liability for this information. For more details, please contact your tax professional.