HOME MARKETING INCENTIVE PAYMENTS

• Citation: 41 CFR Part 302-14
• Sections: 6

§ 302-14.1 Purpose of a home marketing incentive payment when offering a “homesale program”.

A “homesale program” is a program offered by an agency through a contractual arrangement with a relocation services company. The relocation services company purchases a transferred employee's residence at fair market (appraised) value and then independently markets and sells the residence.

§ 302-14.2 Eligibility to receive a home marketing incentive payment.

Agencies have the discretion to offer a home marketing incentive (HMI) payment. An employee is eligible if their agency offers the HMI to them.

§ 302-14.3 Conditions under which a home marketing incentive payment is made.

An employee will receive a home marketing incentive payment when:

(a) The employee enters their residence in the agency's homesale program;

(b) The employee independently and aggressively markets their residence;

(c) The employee finds a bona fide buyer for their residence as a result of their independent marketing efforts;

(d) The employee transfers the residence to the relocation services company;

(e) The agency pays a reduced fee/expenses to the relocation services company as a result of the employee's independent marketing efforts;

(f) The employee meets any additional conditions the agency has established; and

(g) The agency has established a home marketing incentive program.

§ 302-14.4 Home marketing incentive amount.

Agencies will determine the amount of the home marketing incentive payment. The incentive payment, however, may not exceed the lesser of:

(a) Five percent of the price the relocation services company paid when it purchased the residence; or

(b) The savings the agency realized from the reduced fee/expenses it paid as a result of the employee finding a bona fide buyer.

§ 302-14.5 Tax consequences of receiving a home marketing incentive payment.

The home marketing incentive payment is considered income. Consequently, the employee will be taxed, and the agency will withhold income and employment taxes, on the home marketing incentive payment. Employees will not, however, receive a withholding tax allowance (WTA) to offset the withholding on the home marketing incentive payment, nor will they receive a relocation income tax allowance (RITA) payment.

§ 302-14.100 Administration and policies to govern an agency's home marketing incentive payment program.

Agencies must not make a home marketing incentive payment that exceeds the savings realized from the reduced fees/expenses paid to the relocation services company. Agencies must establish policies to govern:

(a) The conditions under which the agency will authorize a home marketing incentive payment for an employee;

(b) The amount of the home marketing incentive payment(s) the agency will offer or the method the agency will use to compute home marketing incentive payments; and

(c) Who will determine in each case whether a home marketing incentive payment is authorized.