Commute Trip Reduction Washington State Tax Credit
Employers who provide commute trip reduction incentives to their employees are eligible for a credit against WA State business and occupation (B&O) or public utility tax liability. Incentive payments for public transportation, ridesharing, non-motorized commuting, and car sharing qualify for the credit.
The credit is equal to 50% of benefit cost up to $60 per employee per year. Currently, no employer or property manager may receive more than $200,000 of credit per fiscal year.
The Commute Trip Reduction Tax Credit has been extended to July 1, 2024!
Employers wishing to take advantage of the CTR Tax Credit must apply online through My Account beginning in the year of 2017 for the 2016 tax year.
For additional information on the CTR B&O Tax/Public Utility Tax Credit go to the Dept of Revenue website. Please call us with questions or contact the Washington State Department of Revenue directly at 1.800.647.7706.
Please share this information with your financial manager or others who pay your company’s taxes.
Note: This application must be submitted by January 31 of each year.
Federal Tax Benefits for Employees
Employers can offer employees who commute by transit or vanpool up to $245 per month in benefits or allow employees to spend pre-tax dollars in the same amount. In addition, employers can share the cost by giving the employee part of the expense tax-free and allowing the employee to purchase the transit pass.