U.S. Rep. Jim Himes is pursuing legislation to stop Connecticut residents who telecommute across state lines from being double-taxed.

"It's the kind of thing that would be great for Connecticut's economy," said Himes in a telephone interview with Patch. "Both indirectly and directly."

The Telecommuter Tax Fairness Act (H.R. 2600), a bi-partisan bill, has 18 co-sponsors, including Scott Murphy (D-NY). It's designed to help workers who primarily work from home offices for New York-based employers. Right now New York can levy taxes on 100 percent of their wages, even if the worker isn't physically present. Connecticut can tax the wages earned on 'Connecticut' days.

"Both states are laying claim to the same wages," said Nancy Belson Goluboff, a New York tax attorney who supports the bill.

By curbing some of those taxes, the bill could improve Connecticut's economy, cut congestion along the I-95 corridor and provide job hunters with a wider search field, said Himes. The bill could also ease payroll tax and withholding burdens for New York employers.

Nine percent of Connecticut residents regularly telecommute, according to Telecommute Connecticut, an arm of the state's Department of Transportation. Many live in Wilton, Ridgefield, New Canaan, Darien and Monroe.

Statewide, more than 158,000 residents work from home at least one day a month. That's 86 percent more than five years ago. Across the country, the number of U.S. workers who telecommute increased from about 12.4 million in 2006 to 17.2 million in 2008, according to World at Work.

New York does currently have some similar legislation in effect, using the "convenience of the employer" rule, but it has some very particular requirements. In 2006 the New York Tax Division announced instances where telecommuters could be exempt from being double taxed. For example, they would need to prove their employer pays them rent for their home office, or that the employer lists the worker's home address as a place of business.

"Not double-taxing telecommuters is a very good idea, and one that I would support as Congressman," said State Sen. Dan Debicella, the 4th District Republican candidate for Congress. "Unfortunately, the bill was introduced on May 21, 2009 and has been languishing in committee since June 12, 2009. Proposing good ideas and not delivering on them is of no help to taxpayers who are hurting, but I am not surprised Jim Himes would bring this up three months before the election hoping we would not notice the bill has gone nowhere."

According to the University of Connecticut, 39 percent of U.S. workers would like to telecommute, but only 31 percent feel they would be allowed. One reason more employers don't is it's tricky to navigate withholding and payroll taxes, Goluboff said.

New York actually favors the rule because it says it keeps money in the state. The Empire State fears telecommuters will no longer come to New York and spend money in state if they can telecommute full time.

Himes also said the legislation would attract jobs to Connecticut, which has reported negative job growth since 1989.

"It would draw more business to Connecticut, both large and small, if there was more clarity about taxation," Himes said. "It would be a real boon."

Moreover, the Federal Communications Commission urged Congress to dismantle tax and regulatory barriers to telecommuting. In March the FCC said widespread telecommuting could "potentially open opportunities for 17.5 million individuals." Among these are Americans living in rural areas, the disabled and retirees.

"That's why Himes' legislation is such a timely and terrific solution, particularly for those in Representative Himes' district who have New York employers," said Goluboff. "It's a chief way to help Connecticut."