HB22-1026 To Provide Employers with Tax Credit up to $125,000
Denver South has launched an awareness campaign to support businesses with implementation of HB22-1026, a new tax credit incentivizing employers to invest in alternative transportation options. This new credit is available for tax years starting on or after January 2023 and before January 1, 2025.
Under HB22-1026 employers can claim a tax credit for 50% of costs associated with providing Transportation Demand Management (TDM) strategies. Investments eligible for the credit include mass transit passes, bike sharing programs, vans for vanpooling, shuttles, electric scooters and e-bikes, and cash incentives for employee participation. Administrative costs associated with the program are also eligible for reimbursement. For example, if an employer purchased RTD EcoPasses for their employees they would be able to request half of that cost back as a tax credit.
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 will be required to file an Annual Employer Plan Report form, which is currently being developed by the Colorado Department of Revenue. Employers will also be required to provide the department its plan for notifying its employees of the alternate transportation option and the steps the employer will take to encourage employees to use those options.
“We are excited as – even before HB22-1026 – we were seeing a lot of interest around TDM and an uptick of employers investing in TDM initiatives to support their employees commutes with RTD passes, e-bikes and scooter programs,” shared Sheryl Machado, Director of Communications & Public Affairs for Denver South. “Our employers have always been proactive at voluntarily reducing congestion and improving air quality, and this tax credit will only continue our employer’s investments in TDM.”
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Denver South, the Denver Regional Council of Governments (DRCOG), and neighboring Transportation Management Organizations are working with the Department of Revenue and the bill sponsors during the rulemaking process to provide feedback and recommendations for implementation of the bill expected to take place this spring. To learn more about HB22-1026 visit https://denver-south.com/alternative-transportation/.
