41 C.F.R. Subpart A—Payment of Incentive to the Employee
Title 41 - Public Contracts and Property Management
Note to subpart A: Use of pronouns “I”, “you”, and their variants throughout this subpart refers to the employee. 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. The purpose of a home marketing incentive payment is to reduce the Government's relocation costs by encouraging transferred employees to participate in their employing agency's homesale program to independently and aggressively market, and find a bona fide buyer for their residence. This significantly reduces the fees/expenses their agencies must pay to relocation services companies and effectively lowers the cost of such programs. Yes, you are eligible to receive a home marketing incentive payment if you are an employee who is authorized to transfer and you otherwise meet requirements for sale of your residence at Government expense. No, your agency determines when it is in the Government's interest to offer you a home marketing incentive. You will receive a home marketing incentive payment when: (a) You enter your residence in your agency's homesale program; (b) You independently and aggressively market your residence; (c) You find a bona fide buyer for your residence as a result of your independent marketing efforts; (d) You transfer the residence to the relocation services company; (e) Your agency pays a reduced fee/expenses to the relocation services company as a result of your independent marketing efforts; (f) You meet any additional conditions your agency has established, including but not limited to, mandatory marketing periods, list price guidelines, closing requirements, and residence value caps; and (g) Your agency has established a home marketing incentive program. Your agency will determine the amount of your 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 from you; or (b) The savings your agency realized from the reduced fee/expenses it paid as a result of you finding a bona fide buyer. Yes, the home marketing incentive payment is considered income. Consequently, you will be taxed, and your agency will withhold income and employment taxes, on the home marketing incentive payment. You will not, however, receive a withholding tax allowance (WTA) to offset the withholding on your home marketing incentive payment, nor will you receive a relocation income tax (RIT) allowance payment for substantially all of your Federal, state and local income taxes on the incentive payment.
Title 41: Public Contracts and Property Management
PART 302–14—HOME MARKETING INCENTIVE PAYMENTS
Subpart A—Payment of Incentive to the Employee
§ 302-14.1 What is a “homesale program'?
§ 302-14.2 What is the purpose of a home marketing incentive payment?
§ 302-14.3 Am I eligible to receive a home marketing incentive payment?
§ 302-14.4 Must my agency pay me a home marketing incentive?
§ 302-14.5 Under what circumstances will I receive a home marketing incentive payment?
§ 302-14.6 How much may my agency pay me for a home marketing incentive?
§ 302-14.7 Are there tax consequences when I receive a home marketing incentive payment?
