The process can work without tax credits. In just about any city where space is at a premium, a company not having to provide/plan for space for 100% of their workforce (since a good portion would be working from home at any given time) alone could provide the financial incentives to do that.

One of the last companies I worked with as a consultant had a system like that. A fairly big portion of the office either worked 4 days a week (4x10), and/or worked one day a week from home. Most of those in that pool would "share desks", and would have something like a "corporate locker" for their stuff/files. You'd then "sign up" for a local desk that day, which of course were all configured the same, with roaming profiles, etc... carrying your config with you. You'd sign in to your phone number which would then forward calls to whatever you designated, etc..

It becomes rather easy to justify it that way: rent + utilities + insurance on 80% of the space you initially needed AND everyone's happier. You could do this much simpler by making 2 people "share" office space - doesn't need to be that extreme.