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Rep. Paul K. Frost files bill proposing work-from-home tax credits and deductions
Summary
Representative Paul K. Frost filed House Bill No. 3096 on Jan. 16, 2025, proposing corporate and individual tax incentives for remote work, including a $10-per-remote-employee corporate credit, a 15% equipment credit for employers, and a 20% individual deduction for certain home-office expenses.
Representative Paul K. Frost of Auburn filed legislation Jan. 16 proposing state tax incentives aimed at supporting remote work in Massachusetts. House Bill No. 3096 would add new sections to chapter 63 and amend chapter 62 to create a mix of corporate credits and an individual deduction tied to working from a Massachusetts residence.
The bill would allow a business corporation a $10 credit against its excise for each “qualified remote employee” and a separate credit equal to 15% of the corporation’s cost for business and communication equipment essential for employees to work remotely. It also would let individuals who meet the bill’s “qualified remote employee” definition claim a deduction equal to 20% of certain remote-employment expenses not paid for by their employer, including internet access and office equipment.
Under the proposal, a “qualified remote employee” is a salaried, full-time employee as defined by section 31C who uses their primary Massachusetts residence as their workplace for at least 16 hours per week on average during the taxable year. The corporate credits are constrained so they cannot reduce a corporation’s excise liability below the amounts required under section 39(b) or section 67 of chapter 63.
House No. 3096 would add a new section 31O to chapter 63 to establish the $10-per-employee credit; add section 31P to chapter 63 to establish the 15% equipment credit; and insert a new clause into section 3 of chapter 62 to create the 20% individual allowance for qualifying remote employees. The bill filing cites a similar matter from the prior legislative session, House No. 2794 of 2023–2024.
The filing document lists Paul K. Frost, representative for the 7th Worcester district, as the petitioner. The document does not include committee referrals, votes, or any enacted changes; it is a bill petition and text filed with the House docket on Jan. 16, 2025. Any subsequent committee action, floor debate, amendments, or votes are not specified in the filing.
