Legislation to give tax credits to employers has been extended to tax year 2016 and provides for tax credit of up to $1,200 per employee up to a total of $50,000 per employer. Qualifying for the tax credits are computer hardware and software (including security software), including delivery, installation, and insurance charges, and high-speed Internet charges for employees who have signed a telework agreement. Employers can also receive a tax credit of up to $20,000 for conducting a telework assessment (VA Code Sec. 58.1-439.12:07).
Employers may not deduct for expenses deducted from federal taxes. The Virginia Department of Taxation administers the tax credit program. Employers must apply for the credit program from September 1 to October 31 of the preceding year. For more information, go to http://www.tax.virginia.gov