HB 22-1026 Summary

• Replaces the income tax deduction for employer-provided alternative transportation with a tax credit equal to 50% of amounts spent, effective for tax years beginning January 1, 2023 through December 31, 2024.

• Limits the credit to a maximum of $250,000 per employer per year and $2,000 per employee per year.

• Expands the definition of "alternative transportation options" to include ridesharing, bikesharing programs, electric scooters, carsharing, mass transit subsidies, and guaranteed ride home programs.

• Requires employers to offer alternative transportation options to all Colorado employees (regardless of employment status) or provide substantially equivalent options, and to submit notification plans to the Department of Revenue.

• Credits exceeding income tax liability are refunded to the employer, and the statute sunsets effective January 1, 2029; appropriates $93,758 to the Department of Revenue for implementation.