HI HB120

Establishes a telecommuting tax credit under Chapter 235 for employers who permit one or more full-time employees to work at least 75% of their job duties from home instead of commuting to a workplace.

Tax credit equals a percentage of employer costs related to allowing telecommuting, multiplied by the number of employees who telecommuted for the entire taxable year; excess credits are refundable with a $1 minimum threshold.

Requires employers to comply with all applicable federal, state, and county statutes to qualify; claims must be filed within 12 months of the taxable year's close or the right to claim is waived.

Prohibits counties from restricting or prohibiting telecommuting through charter, ordinance, rule, or policy, except when business activity generates excessive noise, dust, debris, or traffic in the employee's residential area.

Tax credit applies to taxable years beginning after December 31, 2010, and takes effect upon approval.