Second Regular Session
Seventy-third General Assembly
STATE OF COLORADO
INTRODUCED
LLS NO. 22-0161.01 Jason Gelender x4330
HOUSE BILL 22-1026
House Committees Senate Committees
Finance
A BILL FOR AN ACT
C
ONCERNING THE REPLACEMENT OF THE INCOME TAX DEDUCTION FOR101
AMOUNTS SPENT BY AN EMPLOYER TO PROVIDE ALTERNATIVE102
TRANSPORTATION OPTIONS TO EMPLOYEES WITH AN INCOME103
TAX CREDIT FOR AMOUNTS SPENT BY AN EMPLOYER FOR THAT104
PURPOSE.105
Bill Summary
(Note: This summary applies to this bill as introduced and does
not reflect any amendments that may be subsequently adopted. If this bill
passes third reading in the house of introduction, a bill summary that
applies to the reengrossed version of this bill will be available at
http://leg.colorado.gov/
.)
Legislative Oversight Committee Concerning Tax Policy. The
bill replaces an existing income tax deduction for expenses incurred by
HOUSE SPONSORSHIP
Bird and Woog, Benavidez
SENATE SPONSORSHIP
Hansen and Liston, Kolker
Shading denotes HOUSE amendment. Double underlining denotes SENATE amendment.
Capital letters or bold & italic numbers indicate new material to be added to existing statute.
Dashes through the words indicate deletions from existing statute. employers when providing alternative transportation options to employees
with a refundable income tax credit of 50% of such expenses for such
employers. The credit is allowed for income tax years beginning on or
after January 1, 2023, but before January 1, 2033.
Be it enacted by the General Assembly of the State of Colorado:1
SECTION 1. In Colorado Revised Statutes, amend 39-22-509 as2
follows:3
39-22-509. Credit against tax - employer expenditures for4
alternative transportation options for employees - legislative5
declaration - definitions. (1) I
N ACCORDANCE WITH SECTION 39-21-3046
(1),
WHICH REQUIRES EACH BILL THAT CREATES A NEW TAX EXPENDITURE7
TO INCLUDE A TAX PREFERENCE PERFORMANCE STATEMENT AS PART OF A8
STATUTORY LEGISLATIVE DECLARATION , THE GENERAL ASSEMBLY HEREBY9
FINDS AND DECLARES THAT:10
(a) T
HE GENERAL LEGISLATIVE PURPOSES OF THE TAX CREDIT11
ALLOWED BY THIS SECTION ARE:12
(I) T
O INDUCE CERTAIN DESIGNATED BEHAVIOR BY TAXPAYERS ,13
SPECIFICALLY THE PROVISION OF ALTERNATIVE TRANSPORTATION OPTIONS14
BY EMPLOYERS TO EMPLOYEES ; AND15
(II) T
O PROVIDE TAX RELIEF FOR CERTAIN BUSINESSES ,16
SPECIFICALLY EMPLOYERS THAT PROVIDE ALTERNATIVE TRANSPORTATION17
OPTIONS TO THEIR EMPLOYEES;18
(b) T
HE SPECIFIC LEGISLATIVE PURPOSE OF THE TAX CREDIT19
ALLOWED BY THIS SECTION IS TO INCREASE THE USE OF ALTERNATIVE20
TRANSPORTATION OPTIONS BY EMPLOYEES IN GOING TO AND RETURNING21
FROM THEIR PLACES OF EMPLOYMENT BY PROVIDING AN INCENTIVE TO22
EMPLOYERS TO PROVIDE ALTERNATIVE TRANSPORTATION OPTIONS TO23
HB22-1026-2- EMPLOYEES. IN ORDER TO ALLOW THE GENERAL ASSEMBLY AND THE1
STATE AUDITOR TO MEASURE THE EFFECTIVENESS OF THE CREDIT , THE2
DEPARTMENT OF REVENUE , WHEN ADMINISTERING THE CREDIT , SHALL3
REQUIRE EACH EMPLOYER THAT CLAIMS THE CREDIT TO PROVIDE , AT A4
MINIMUM, INFORMATION ABOUT THE SPECIFIC ALTERNATIVE5
TRANSPORTATION OPTIONS OFFERED , THE NUMBER OF EMPLOYEES6
OFFERED AN ALTERNATIVE TRANSPORTATION OPTION , AND, TO THE7
EXTENT FEASIBLE, THE NUMBER OF EMPLOYEES ACTUALLY USING AN8
ALTERNATIVE TRANSPORTATION OPTION AND THE NUMBER OF TRIPS9
TAKEN BY EMPLOYEES USING AN ALTERNATIVE TRANSPORTATION OPTION .10
(1) (2) There shall be allowed to corporate employers a deduction11
from Colorado gross income, to the extent not previously deducted in12
arriving at Colorado gross income, equal to the employer's contribution13
to: AS USED IN THIS SECTION, UNLESS THE CONTEXT OTHERWISE REQUIRES :14
(a) "A
LTERNATIVE TRANSPORTATION OPTIONS " MEANS free or15
partially subsidized ridesharing arrangements for employees, including,16
but not limited to, providing
TO:17
(I) P
ROVIDING vehicles for such arrangements, cash incentives
18
(not ARRANGEMENTS;19
(II) C
ASH INCENTIVES, NOT to exceed the value of such20
transportation)
ARRANGEMENTS, for participation in ridesharing21
arrangements, and the ARRANGEMENTS;22
(III) T
HE payment of all or part of the administrative cost incurred23
in organizing, establishing, or administering a ridesharing program
FOR24
EMPLOYEES; AND25
(IV) F
REE OR PARTIALLY SUBSIDIZED MASS TRANSIT TICKETS ,26
TOKENS, PASSES, OR FARES FOR USE BY EMPLOYEES IN GOING TO AND27
HB22-1026
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(b) "E
MPLOYER" MEANS AN ENTITY, INCLUDING BUT NOT LIMITED2
TO A CORPORATION, PARTNERSHIP, JOINT VENTURE, COMMON TRUST FUND,3
LIMITED ASSOCIATION, POOL OR WORKING AGREEMENT , OR LIMITED4
LIABILITY COMPANY, THAT EMPLOYS ONE OR MORE PERSONS IN THIS5
STATE.6
(II)
(c) For the purposes of this section, "Ridesharing7
arrangement" means the vehicular transportation of passengers traveling8
together primarily to and from such passengers' places of business or9
work or traveling together on a regularly scheduled basis with a10
commonality of purposes if the vehicle used in such transportation is not11
operated for profit by an entity primarily engaged in the transportation12
business and if no charge is made therefor other than that reasonably13
calculated to recover the direct and indirect costs of the "ridesharing14
arrangement", including, but not limited to, a reasonable incentive to15
maximize occupancy of the vehicle. However, nothing in this16
subparagraph (II) shall be construed as excluding SUBSECTION (2)(c)17
EXCLUDES from this definition an arrangement by an employer engaged18
in the transportation business who THAT provides ridesharing19
arrangements for its employees. The term "RIDESHARING" includes20
"ridesharing arrangements" commonly known as carpools and vanpools,21
except that this term BUT does not include school transportation vehicles22
operated by elementary and secondary schools when they are operated for23
the transportation of children to or from school or on school-related24
events.25
(b) Free or partially subsidized mass transit tickets, tokens, passes,26
or fares for use by employees in going to and returning from their places27
HB22-1026
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(3) F
OR INCOME TAX YEARS BEGINNING ON OR AFTER JANUARY 1,2
2023,
BUT BEFORE JANUARY 1, 2033, THERE IS ALLOWED A CREDIT TO3
EACH EMPLOYER IN AN AMOUNT EQUAL TO FIFTY PERCENT OF THE AM OUNT4
SPENT BY THE EMPLOYER TO PROVIDE ALTERNATIVE TRANSPORTATION5
OPTIONS TO SOME OR ALL OF ITS EMPLOYEES .6
(4) T
HE AMOUNT OF ANY CREDIT ALLOWED UNDER THIS SECTION7
THAT EXCEEDS THE EMPLOYER 'S INCOME TAXES DUE IS REFUNDED TO THE8
EMPLOYER.9
(5) T
HE EXECUTIVE DIRECTOR MAY PRESCRIBE FORMS AND10
PROMULGATE RULES AS NECESSARY TO ADMINISTER THIS SECTION .11
(6) T
HIS SECTION IS REPEALED, EFFECTIVE JANUARY 1, 2037.12
SECTION 2. Act subject to petition - effective date. This act13
takes effect January 1, 2023; except that, if a referendum petition is filed14
pursuant to section 1 (3) of article V of the state constitution against this15
act or an item, section, or part of this act within the ninety-day period16
after final adjournment of the general assembly, then the act, item,17
section, or part will not take effect unless approved by the people at the18
general election to be held in November 2022 and, in such case, will take19
effect January 1, 2023, or on the date of the official declaration of the20
vote thereon by the governor, whichever is later.21
HB22-1026
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