Colorado Alternative Transportation Tax Credit: A Guide for Employers
What is the Colorado Alternative Transportation Tax Credit?
The State of Colorado introduced the Alternative Transportation Tax Credit to encourage employers to support sustainable commuting options for their workforce. This tax credit covers up to 50% of eligible transportation expenses aimed at reducing solo driving.
Why Should Your Organization Take Advantage of the Colorado Transportation Tax Credit?
By offering employer transportation benefits, your organization can contribute to these goals while benefiting financially from tax savings.
What Expenses Qualify for the Tax Credit?
Expenses related to programs to support options other than driving alone.
including:
What's in it for your organization?
- Save up to 50% on eligible transportation expenses through the tax credit
- Enhance employee benefits to attract and retain top talent
- Reduce parking demand and cut costs at your worksite
- Support ESG goals by promoting sustainable commuting options
Boost Employee Satisfaction with the RTD EcoPass
- Unlimited transit rides – including the A-Line to DEN
- Easy, low-maintenance implementation for employers
- Improved employee morale and productivity with stress-free commuting
Invest in the EcoPass and claim your tax credit today!
Need Ideas for Alternative Transportation Programs?
- RTD EcoPass – Unlimited rides – including A-Line to DEN
- Vanpool – Support employees with longer commutes
- Administrative Costs – any staff time or expenses related to program
- Let’s Get Creative –
- E-Bike/E-Scooter subsidy or subscriptions
- Company shuttle
What's not covered?
- Electric Vehicle Charging Stations
- Rental Cars
- Uber/Lyft Rides
- Out-of-State transportation expenses
- Physical property (eg. bike racks, locker rooms)
Program and Implementation Guidelines:
There is a cap of $250,000 annually ($125,000 max credit) and a $2,000 annual limit per employee.
To claim the credit, employers are required to file an Annual Employer Plan Report form, which is in development by the Colorado Department of Revenue.
Employers will also be required to provide the department with its plan for notifying employees of alternate transportation options and the steps they’ll take to encourage employees to use them.
Initially, the tax credit was only approved for 2023 and 2024, but the program has since been extended to 2027. Now, employers can buy an Ecopass for employees annually and get the tax credit. Discover more about how Colorado’s Transportation Tax Credit saves businesses 50% on TDM, cuts traffic, and boosts air quality.
Learn More About Colorado's Clean Commute Program
See how the Way To Go – Colorado Clean Commute program can reduce traffic, improve air quality, and offer employer transportation benefits to your employees.
