Alternative Transportation Tax Credit

Through tax year 2027, the State of Colorado will provide a refundable tax credit of 50% for employer expenses related to providing alternative transportation options to employees.

The tax credit’s purposes are to increase the use of alternative transportation options, reduce traffic congestion and improve the state’s air quality.

Expenses relate to programs or infrastructure to support anything other than driving alone. Those transportation options include transit, biking, carpool, vanpool and administrative expenses.

In addition to beign good for our environment, it’s also good for your bottom line:

• Attract and retain the best employees, Surveys show people want to work for employers that support getting their employees to work
• Expand your corporate social responsibility and be a leader in the sustainability space
• Enhance your employee benefit offerings, and receive a 50% tax credit while doing it.

There are four easy steps to get started. First, plan and develop your commute program. Then, fill out DR 1323 and track all of your eligible expenses through that tax year. Finally, claim your 50% credit!