Important Update to the Virginia Tax Credit: this program has been suspended and new applicants for the tax credit will not be accepted. Learn more in our recent update.
We all know that telework programs are good for business, but now, there’s a tax incentive that helps your company out even more. The Virginia Telework Expenses Tax Credit, which was discontinued after 2016, has returned.
Private or for-profit Virginia businesses could receive up to $50,000 in tax credits for telework-related expenses incurred in 2020 and up to $1,200 can be spent on each teleworking employee.
What are Telework-Related Expenses?
Eligible telework-related expenses may include:
- Computer equipment (laptops or tablets)
- Networking equipment and software
- Security and antivirus systems
- Internet access and service (routers or modems)
- Communications equipment and services (VoIP, landline, cell phone service, video/webcams)
- Telework center fees
But I Don’t Have a Formal Telework Policy
While a telework policy is not required at the time you reserve your spot for the tax credit, you will need to develop a formal telework policy and sign a telework agreement with each employee eventually. Arlington Transportation Partners (ATP) along with our friends at Telework!VA can help by:
- Providing sample policies and agreements
- Working with you to pilot a telework program
- Assisting with implementation of a telework program
- Providing ongoing support and training for managers
If you'd like to apply for the telework tax credit and do not currently have a telework program in place, think ahead and contact us today so you're well prepared for 2020.
Where Do I Sign Up?
Interested businesses must file the Telework Expenses Tax Credit Reservation Application (Form TEL-1), included below, with the Department of Taxation between September 1, 2019 and October 31, 2019 to receive the tax credit for expenses incurred in 2020. After the form has been filed, the Department will provide tentative approval by December 31, 2019.
This Sounds Familiar
If you completed TEL-1 last fall to reserve a piece of the tax credit for expenses incurred in 2019 and received a reservation letter from the Department of Taxation, it’s now time for you to move on to the Telework Expenses Tax Credit Confirmation Application (Form TEL-2). This form should be filed by April 1, 2019 to find out how much you can claim on your Virginia return.
Editor's Note: This blog was first published in October 2017 and has been republished with updated information written by Marie Cox.
Photo Credit: Reema Desai/ReemaDesai.com for Arlington Transportation Partners