Washington State Tax Credit
Employers and property managers who provide commute trip reduction incentives to or on behalf of their own or other employees are eligible for a credit against their business and occupation (B&O) or public utility tax (PUT) liability. The credit is equal to 50% of benefit cost up to $60 per employee per year. No employer or property manager may receive more than $100,000 of credit per fiscal year.
The application must be received by the Department of Revenue (DOR) between January 1 and January 31, following the calendar year in which the applicant made commute trip reduction incentive payments. The DOR will disapprove any applications received after January 31, regardless of the reason why the application was not received by the due date. Applications will be approved within 60 days of the January 31 deadline. You must file electronically or go to the Dept of Revenue for additional information on the CTR B&O Tax/Public Utility Tax Credit. Also see the Department of Revenue Special Notice for Commute Trip Reduction.
Also, check with your tax advisor.
- Washington State DOR Commute Trip Reduction Credit online application.
- Metro’s Pre-tax Commuter Benefit Toolkit has easy steps to a pre-tax commuter program, customizable forms, flyers, posters and useful links.
- IRS regulations on Qualified Transportation Fringe Benefits see the 2001 Federal Register. (155KB .PDF).