The State of Colorado recently passed a bill which provides a 50% tax credit to organizations who provide alternative transportation options to their workforce.

The tax credit’s purposes are to get commuters out of their cars and increase the use of alternative transportation, reduce traffic congestion, and improve our state’s air quality.

Expenses related to programs to support options other than driving alone.

• Provide measurable and meaningful support to your ESG goals – and receive a generous tax credit for doing so.
• Attract and retain the best employees with enhanced benefit offerings
• Reduce parking demand at your worksite, saving you money

• RTD EcoPass – Unlimited rides – including A-Line to DEN.
• Vanpool – Support employees with longer commutes
• Parking Cash-Out – Direct cash incentives to employees
• Administrative Costs – any staff time or expenses related to program
• Let’s Get Creative –
  • E-Bike/E-Scooter subsidy or subscriptions
  • Company shuttle
  • Sustainable commute gear

• Electric Vehicle Charging Stations
• Rental Cars
• Uber/Lyft Rides
• Out-of-State transportation expenses

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.

Learn more about Colorado Clean Commute:
https://waytogo.org/colorado-clean-commute