In 2011, Governor Bob McDonnell and the Virginia General Assembly approved new tax credit legislation aimed at encouraging private sector telework. The legislation provides for a tax credit of up to $1,200 per employee, up to $50,000 per organization, for eligible telework expenses incurred during taxable years 2012 and 2013. Expenses incurred during the taxable year that allow an employee to begin teleworking are eligible for the tax credit, as is the expense of conducting a telework assessment. A full list of eligible expenses can be found at http://www.teleworkva.org/go/for-managers/telework-tax-credit.
Between September 1 and October 31 in the year prior to earning the tax credit, businesses must apply for tentative approval through the Virginia Department of Taxation. To do this, download a Telework Expenses Tax Credit Reservation Application and submit to the Virginia Department of Taxation at Tax.Virginia.gov. For example, to be eligible for the credit in 2012 the application must be submitted by October 31, 2011. More information about the credit can be found at http://www.teleworkva.org/go/for-managers/telework-tax-credit/
In addition, businesses directly impacted by construction of the Dulles Corridor Metrorail Project or the I-495 HOT/HOV Lanes are eligible to receive $50,000 to start or expand a telework program. This incentive is part of a Transportation Management Plan to reduce congestion during Megaproject construction. Please note that businesses eligible for this incentive must choose between the incentive and the tax credit. More information on this incentive can be found at www.vamegaprojects.com