https://www.bloomberg.com/news/features/2023-02-21/another-threat-to-work-from-home-tax-breaks
The attendance of employees is a requirement for many tax advantages. Since the cost of hybrid work arrangements is passed through to downtowns, officials are contemplating whether to enforce them.
American cities and states have only a limited number of levers at their disposal to boost office turnout, despite requests from mayors of large cities to encourage workers out of their pajamas and back into the downtowns.
Tax rebates, however, have been a weapon in their arsenal since before the pandemic.
Many of the billions of dollars in tax incentives that cities and states give to American businesses each year include that employees must at least reside in the area and occasionally visit the office.
Relaxing in-office attendance for businesses getting these incentives could be expensive.
The contracts were created at a period before the epidemic, when going to work was a guarantee. Currently, governments are debating whether to step up enforcement or completely change the regulations. To take into account the new realities of hybrid work, regulatory reforms have already been suggested in certain states and localities.
Seth Martindale, senior managing director at real estate investment firm CBRE, stated that “the idea of remote working wasn’t integrated into any of those contracts to the extent it should be now.” “Covid messed up the environment as a whole. There has been a learning curve for everyone.
The way that different jurisdictions choose to adapt could have an impact on remote work regulations at businesses as well as downtowns across the nation.
According to John Boyd, a corporate site selection consultant and principal at the Boyd Corporation, “Our clients want it all.” “Yes, that will be a driving element — along with productivity — to bring workers back in the office if they feel they are in danger of losing a tax incentive.”
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