HI HB120

Establishes a telecommuting tax credit for employers who allow one or more full-time employees to work at least 75% of job duties from their residence instead of commuting to an employer's location.

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 over tax liability are refundable to the taxpayer (minimum $1).

Requires taxpayers to comply with all applicable federal, state, and county statutes, rules, and regulations to qualify for the credit; claims must be filed within 12 months after the close of the taxable year.

Authorizes the Director of Taxation to prepare claim forms, require proof of eligibility, and adopt rules to implement the tax credit program.

Prohibits counties from restricting telecommuting through charter, ordinance, rule, or policy, except when business activity generates excessive noise, dust, debris, or traffic in the employee's residential area; applies to taxable years beginning after December 31, 2010.