Colorado commuters spend countless hours a year battling traffic congestion. With more businesses increasing their employees’ in-office requirements, traffic woes and worsening air quality are expected to continue as unintended consequences. Unless something changes.

Enter The Alternative Transportation Options Tax Credit, a new initiative from the State of Colorado. This groundbreaking legislation incentivizes Colorado employers to invest in transportation options that get their employees out of their cars, fostering a more sustainable future for the state.

How Colorado’s Tax Credit Benefits Businesses and the Environment

The Alternative Transportation Options Tax Credit offers Colorado businesses a 50% tax credit for eligible expenses associated with Transportation Demand Management (TDM) programs. In simpler terms, the State will reimburse you for half the cost of getting your employees out of their cars and into alternative transportation options like light rail, biking, scooters, and more.

This is a chance to not only benefit the environment by reducing traffic congestion and emissions, but also for employers to strengthen their Environmental, Social, and Governance (ESG) efforts. ESG is a key factor for investors, and TDM programs demonstrate a clear commitment to sustainability.

Plus, offering eco-friendly commute options is a major perk for environmentally conscious employees and those who chose to live close to their company’s worksite. In a competitive job market, highlighting your commitment to environmental responsibility is attractive to workers who share these values – particularly younger talent entering the workforce.

Understanding the Need for Change

Residents throughout Colorado are all too familiar with the frustrations of traffic congestion. Gridlock not only impacts commute times but also contributes to air quality concerns and overall individual wellbeing. 

While the desire for a cleaner environment is strong, employees may harbor hesitations about adopting alternative transportation options. Common concerns include:

  • Reliability and Schedule Flexibility: Will public transportation or alternative modes get me to work on time?
  • Safety: Is cycling or using an eScooters safe on busy roads and bikepaths?
  • Inconvenience: Will using alternative transportation take longer or require additional planning?
  • Affordability: Can I afford the cost of a monthly transit pass, e-bike, or vanpool membership compared to driving my own car?

A Spectrum of Sustainable Solutions

This Colorado program is not just for big companies. The program empowers employers of all sizes, including non-profit and government, to explore and embrace a wide range of TDM strategies to address employee concerns and hesitations, including:

What’s Covered?

    • RTD EcoPass – Unlimited rides on all RTD services – including A-Line to DEN. 
    • Vanpool – Support employees with longer commutes (20+ miles one-way) 
    • Parking Cash-Out – Direct cash incentives to employees who use sustainable commute modes 
  • Administrative Costs – staff time or expenses related to program promotion

What’s not covered? 

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

Program & Implementation Guidelines (The Fine Print)

The program comes with clear limitations. There’s a yearly cap of $250,000 with a maximum credit of $125,000, and a per-employee limit of $2,000 annually. To claim the credit, companies will need to file a forthcoming Annual Employer Plan Report from the Colorado Department of Revenue. Additionally, they must outline a communication plan for informing employees about the program and strategies to encourage participation.

This may sound intimidating but there are templates and examples to get you started. 

Denver South Can Help You Get Started

For over four decades, Denver South has been a driving force behind regional collaborations, fostering a thriving environment for businesses in the South I-25 corridor. Committed to both economic development and sustainable transportation practices, they’re proud to champion House Bill 22-1026 (HB22-1026) and have launched a region-wide awareness campaign in support of it. 

“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. 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.”
-Evangelos C Gatseos, Denver South TDM-CP

While the options to embrace the Alternative Transportation Tax Credit program may seem overwhelming, don’t worry! As a Transportation Management Association, Denver South is here to help. Their team of experts are dedicated to helping businesses in the South I-25 corridor navigate the tax credit and implement successful TDM programs, including crafting programs, fleshing out ideas, supporting employee awareness and participation, and more – all at no cost to employers.

The Time to Act is Now

The Alternative Transportation Options Tax Credit is a fantastic opportunity for Colorado employers to do their part for the environment, attract top talent, and save money. Don’t miss out! Contact Denver South today to learn more and get started creating a more sustainable future for your business and Colorado.

Key Points to Remember:

  • The Alternative Transportation Options Tax Credit offers a 50% tax credit for TDM programs.
  • The program is open to businesses of all sizes.
  • There are a variety of ways to implement a TDM program.
  • Denver South can help you navigate the tax credit and implement a successful program.
  • The program has been extended to 2027 – you can take advantage every year!

Taking action on climate change starts with small steps. By working together, Colorado businesses can make a big difference.

Looking for More Information? Contact Denver South Today.