The Virginia Telework Expenses Tax Credit, which allowed private or for-profit businesses in Virginia to receive up to $50,000 in tax credits for telework-related expenses, expired on February 20, 2019 with the passage of VA HB 2065. This made 2018 the last year companies could receive the credit for telework-related expenses.
What If: I Received the Tax Credit in 2018
If your business filed Form TEL-1 for the Virginia Telework Expenses Tax Credit between Semptember 1 and October 31, 2017, received tentative approval, and filed the corresponding allocation letter (Form TEL-2) by April 1, 2018—you’ve done your part. You should have received a credit from the Department of Taxation. If you have followed all necessary steps and did not receive a credit, please contact your tax advisor or Telework!VA.
What If: I Applied for the Tax Credit in 2018
If your business filed Form TEL-1 for the Virginia Telework Expenses Tax Credit between September 1 and October 31, 2018 and received tentative approval from the Department of Taxation by December 31, 2018, the passing of this legislation means that you can no longer receive a credit for telework-related expenses incurred in 2019. There is no need to file Form TEL-2.
Even though the telework tax credit has been eliminated, it doesn’t mean that incentives to create or enhance your telework program have disappeared. In fact, for businesses in Arlington, 2019 is a great time to think about your telework program. Businesses located along I-66 or I-395 will soon be able to receive up to $10,000 to reimburse telework-related expenses for employees entering new telework agreements through Telework!VA.
Still have questions about telework? Take a look at our telework guide and let us know how we can help you get started or enhance your program today.
Photo Credit: Reema Desai/ReemaDesai.com for Arlington Transportation Partners