TDM Financial Incentives Offered at the State Level

California

In non-attainment areas, each employer of 50 persons or more who provides a parking subsidy to employees, must offer a parking cash-out program. "Parking cash-out program" means an employer-funded program under which an employer offers to provide a cash allowance to an employee equivalent to the parking subsidy that the employer would otherwise pay to provide the employee with a parking space. See CALIFORNIA CODES HEALTH AND SAFETY CODE SECTION 43845 http://www.leginfo.ca.gov/calaw.html

Connecticut

Connecticut's Traffic Reduction Tax Credit Program is a credit on an employer's corporation business tax return for expenses incurred as part of a state-approved traffic reduction plan for companies in Fairfield County. The maximum eligible credit is the lesser of the following two amounts: The number of participating employees multiplied by $250 or 50% of the total approved direct costs. The total amount of credits available under the program is limited to $1,500,000 per year. For more information: Section 12-217s-8(c) at http://www.cga.ct.gov/2005/pub/Chap208.htm#Sec12-217s.htm

Delaware

Employers who participate in a Department-approved TraveLink program are eligible for a credit against the taxes and/or fees imposed by various statutory provisions and the credit must be taken annually at the conclusion of the tax year. Employers can claim up to 10% of the direct cost (DC) of developing, implementing and maintaining the Travelink plan/program, or the product of either equation described below, whichever product of the equations below is less: (1) Tax Credit = (Commuter Trip Reductions/Commuter Trips Generated) x Direct Cost; or (2) Tax Credit = Commute Trip Reductions x $250. For more info, Delaware Code under: Title 30, Part II, Chapter 20, Subchapter IV. Tax Credit and License Fee Reduction for Mitigation of Commuter Traffic During Peak Travel Periods, Section 2033. Reduction in business taxes and/or license fees for mitigation of commuter traffic.

Georgia

Employers can receive a state income tax credit for any federal qualified transportation fringe benefit provided by the employer to an employee which benefit is in addition to and not in lieu of compensation otherwise payable to the employee, in an amount equal to $25.00 per employee receiving such benefit. Title 48 Chapter 7 Section 29.3 http://www.legis.state.ga.us/cgi-bin/gl_codes_detail.pl?code=48-7-29.3

Maryland

An individual or corporation may claim a credit against the State income tax for the cost of providing commuter benefits to the business entity's employees as provided under An employer can receive a tax credit up to of 50% of a $100 benefit for providing eligible commuter expenses for their employees. The maximum value of the tax credit is $50 per month, per employee. More info on how it works from Maryland Department of Transportation. See Maryland Code: TAX- GENERAL Title 10: Income Tax Subtitle 7. Income Tax Credits Section 10-715. For providing employee commuter benefits and Maryland Code : ENVIRONMENT : Title 2: Ambient Air Quality Control. Subtitle 9. Tax Credits for Employer-Provided Commuter Benefits. Section 2-901. Established. (for rates).

Minnesota

Employers who subsidize the cost of bus passes for employees and who currently pay state corporate income taxes can claim a credit on their tax return.1 The tax credit is simple: employers may reduce the amount of their state taxes by 30% of the expenditure they make on bus passes or vanpool expenses for employees. State Corporate Franchise Tax Forms (M-4) include a line item for claiming the transit tax credit (see www.taxes.state.mn.us/corps/forms/2002/pdf/etp.pdf). Employee-paid transit benefits (using pre-tax income) are not eligible for the MN Corporate income tax credit. More info on Chapter 290 Section 6 Subd. 28 can be found in the Transit Benefits Guide produced by the local commuter assistance programs.

New Jersey

Taxpayers, for periods beginning on or after January 1, 1995, but ending not later than December 31, 2007, can receive a tax credit for providing commuter transportation benefits equal to 10% of the cost of commuter transportation benefits for the relevant accounting or privilege period, as appropriate, subject to the following limitations. The credit granted a taxpayer for an accounting or privilege period can not exceed the per employee limit multiplied by the number of employees participating in alternative means of commuting at the work location. The per employee limit was $124 in 2003 (and is adjusted for inflation). The taxpayer may only claim a credit for providing commuter transportation benefits if those benefits are provided in addition to and not in lieu of compensation and those benefits are based upon a direct expenditure made after the taxpayer has registered with the Department of Transportation and the taxpayer's employer trip reduction program has been certified for providing commuter transportation benefits by the Department of Transportation. The amount of the credit allowed can not exceed 50% of the tax liability which would be otherwise due. An employer trip reduction program of an employer who is a member of a TMA shall be considered certified by the department. An overview from NJDOT on the Smart Moves describes the tax credit program. You can view the legislation by clicking on "Statutes" at New Jersey Legislature home page and search for TITLE 27 HIGHWAYS 27:26A-15 Tax credit for providing commuter transportation benefits.

Oregon

A Business Energy Tax Credit may be received against owed Oregon income taxes for up to 35 percent of the cost of qualifying energy or conservation projects. Eligible transportation projects include telework, bicycle purchase, commuter vehicle purchase, carsharing, and parking cash out. An Oregon business or nonprofit entity qualifying for the tax credit may transfer the credit through the Pass-through Option in return for a cash payment. This option that allows a project owner to transfer the project’s tax credit eligibility to persons or businesses with an Oregon income tax liability in return for a cash payment equivalent to the net present value. The Oregon Department of Energy (ODOE) must approve the credit before it can be claimed. http://egov.oregon.gov/ENERGY/CONS/BUS/docs/oar-betc06.pdf

Washington

Employers and property managers who pay the business and occupation (B&O) or public utility (PUT) taxes and provide commute trip reduction incentives to or on behalf of their employees or the employees of others are eligible for the Commute Trip Reduction Credit. The amount of the credit is 50 percent of the amount paid to or on behalf of each employee for ride sharing, carsharing, using public transportation, or using non-motorized commuting. There is a statewide cap - $2.75 million in 2005 (July 1 through June 30). There are also caps for employers and property managers of $200,000 per fiscal year . The cap per individual employee is not to exceed $60 per fiscal year. More info on Chapter 82.70 RCW Commute Trip Reduction Incentives can be found at http://dor.wa.gov/Docs/Pubs/SpecialNotices/2005/sn_05_CommuteTripProgChgs.pdf

National Center for Transit Research's National TDM and Telework Clearinghouse is located at the Center for Urban Transportation Research at the University of South Florida in Tampa, Florida