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This bill amends federal law to restrict states' ability to tax income earned by nonresident workers, including telecommuters. A state may only tax compensation from a nonresident individual when that person is physically present in the state; states cannot tax income earned while the worker is physically located in another state. The bill also prohibits states from deeming remote workers to be 'present' in a state based on factors like working from home for convenience, and requires states to follow the employer's determination of what constitutes working time and compensated time.
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