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Home >> Blog >> The Virginia Telework Tax Credit Returns

The Virginia Telework Tax Credit Returns

Marie Cox
Marie Cox March 7, 2018 Marie Cox is a Business Development Manager at Arlington Transportation Partners and has been living car-free since 2010. While she enjoys walking or running to work most days, she also takes advantage of a leisurely commute on the bus every now and then.
ATP Takeaway: The telework tax credit returned in Fall 2018 and offers up to $50,000 for telework-tax related expenses. Here’s how you can get started and take advantage of savings for your business.

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 2019 and up to $1,200 can be spent on each teleworking employee.

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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 2019.

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, 2018 and October 31, 2018 to receive the tax credit for expenses incurred in 2019. After the form has been filed, the Department will provide tentative approval by December 31, 2018.

Download Form Tel-1 to Apply for Telework Tax Credits

This Sounds Familiar

If you completed TEL-1 last fall to reserve a piece of the tax credit for expenses incurred in 2018 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, 2018 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

Tags: Telework, ATP Services, Employer

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