Georgia is the first state in the nation to offer employers a telework tax credit. Employers are eligible for a one-time tax credit of up to $20,000, plus annual credits of up to $1,200 per new teleworker. Here are the details

Georgia Tax Code:

Amends Article 2 of Chapter 7 of Title 48 of Official Code of Georgia Annotated
Relates to income tax credit
Provides tax credits for telework

For tax year 2009, employers can receive a tax credit for:

Eligible telework expenses incurred during 2009 of up to $1,200 per teleworker. One hundred percent credit can be taken if the employee teleworks 12 or more days per month and the employer is located in a nonattainment county; 75 percent credit if employee teleworks 12 or more days per month; 25 percent credit if employee teleworks 5 or more days per month.
Expenses for equipment (computers, telecommunications, data entry, data processing), connectivity, software, etc.; Expenses must be paid by employer or paid by employee and reimbursed by employer

Additional credit (up to $20,000) can also be received by an employer for:

Program development expenses incurred on or after July 1, 2007 and the end of 2009, provided the employer's formal telework program is implemented in 2009.
Assessment is planning, consulting, training, raw labor costs, etc.

Applications due by October 31, 2008:

Submitted to State Revenue Commissioner
Rules and forms to be promulgated
Up to $2,000,000 budgeted for credits earned in 2009
Employer informed of acceptance by December 31, 2008
Credits taken after purchases or payment
If amounts exceed budget, then funds will be dispersed among employers with timely applications based on a pro rata basis
There may be a public report based on employer name and amounts

To review the complete Georgia Code, please go to http://www.lexis-nexis.com/hottopics/gacode/default.asp and enter document number 48-7-29.11 in the search box provided.