1.1                          A bill for an act 
  1.2             relating to taxation; income and franchise; providing 
  1.3             a telecommuting credit for employers; proposing coding 
  1.4             for new law in Minnesota Statutes, chapter 290. 
  1.5   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.6      Section 1.  [290.0681] [CREDIT FOR TELECOMMUTING EXPENSES.] 
  1.7      Subdivision 1.  [CREDIT ALLOWED.] An employer is allowed a 
  1.8   credit against the tax imposed by this chapter for expenses paid 
  1.9   or incurred during the taxable year equal to: 
  1.10     (1) 100 percent of start-up telecommuting expenses incurred 
  1.11  to set up an employee to begin telecommuting, for up to $100 per 
  1.12  employee; and 
  1.13     (2) 100 percent of ongoing telecommuting expenses incurred 
  1.14  to assist an employee to continue telecommuting, for up to $50 
  1.15  per month per employee. 
  1.16     Subd. 2.  [DEFINITIONS.] (a) "Employer" has the meaning 
  1.17  given in section 290.92, subdivision 1, paragraph (4). 
  1.18     (b) "Employee" has the meaning given in section 290.92, 
  1.19  subdivision 1, paragraph (3). 
  1.20     (c) "Telecommuting expenses" include, but are not limited 
  1.21  to, expenses incurred by an employer on behalf of an employee, 
  1.22  whether by direct payment or by reimbursing the employee, for 
  1.23  telephone line or cable installation, electronic mail or 
  1.24  internet service provider fees, or fees for telephone service or 
  1.25  cellular or other wireless service. 
  2.1      Subd. 3.  [LIMITATIONS; CARRYOVER.] (a) The start-up credit 
  2.2   provided in subdivision 1, clause (1), is allowed only once per 
  2.3   employee. 
  2.4      (b) The credit under this section is an employer credit.  
  2.5   An employee is not eligible to claim it. 
  2.6      (c) An employer shall not claim the credit provided in 
  2.7   subdivision 1, under both clauses (1) and (2), for the same 
  2.8   expense. 
  2.9      (d) The credit for the taxable year shall not exceed 
  2.10  liability for tax.  If the amount of the credit determined under 
  2.11  this section for any taxable year exceeds the liability for tax, 
  2.12  the excess shall be a telecommuting credit carryover to each of 
  2.13  the 15 succeeding taxable years.  The entire amount of the 
  2.14  excess unused credit for the taxable year shall be carried first 
  2.15  to the earliest of the taxable years to which the credit may be 
  2.16  carried and then to each successive year to which the credit may 
  2.17  be carried.  The amount of the unused credit which may be added 
  2.18  under this paragraph shall not exceed the taxpayer's liability 
  2.19  for tax. 
  2.20     Sec. 2.  [EFFECTIVE DATE.] 
  2.21     Section 1 is effective for taxable years beginning after 
  2.22  December 31, 1999.