Deeds Introduces Tax Credit Package to Reduce Traffic Congestion
Legislation Before Senate Finance Committee Establishes Tax Credits for Telecommuting, Flextime and Using Public Transportation or Ridesharing for Daily Commutes
RICHMOND—Senator R. Creigh Deeds yesterday introduced three measures designed to reduce congestion throughout Virginia by offering income tax incentives to businesses that provide employees with flextime or telecommuting options and to individuals who take advantage of carpools and public transportation.
“We simply can’t pave our way out of this traffic gridlock,” said Deeds. “That’s why I believe it is imperative that we address our transportation needs from the demand side of the equation as well. This tax credit package provides real incentives for Virginia businesses and their employees to get commuters off the road during rush hour.”
Senate Bill 6012 provides a flextime income tax credit to employers for employees who enter into a flextime scheduling agreement, meaning they work a four-day workweek or begin their day between 6AM and 9AM. Under the legislation, employers are eligible for up to $25,000 per year in credits.
Senate Bill 6013 provides a tax credit to Virginia businesses for telecommuting expenditures and allows for a 100 percent tax credit for employers to conduct a telecommuting assessment the year prior to implementing a telecommuting program. Employers are eligible for a $1,200 credit per employee, capped at $20,000 per year.
Senate Bill 6014 creates an individual income tax deduction for using public transportation or carpooling. Individuals would be eligible to deduct up to 50 percent of the costs incurred using public transportation or take advantage of a $500 yearly deduction for carpooling, walking or biking to work.
RICHMOND—Senator R. Creigh Deeds yesterday introduced three measures designed to reduce congestion throughout Virginia by offering income tax incentives to businesses that provide employees with flextime or telecommuting options and to individuals who take advantage of carpools and public transportation.
“We simply can’t pave our way out of this traffic gridlock,” said Deeds. “That’s why I believe it is imperative that we address our transportation needs from the demand side of the equation as well. This tax credit package provides real incentives for Virginia businesses and their employees to get commuters off the road during rush hour.”
Senate Bill 6012 provides a flextime income tax credit to employers for employees who enter into a flextime scheduling agreement, meaning they work a four-day workweek or begin their day between 6AM and 9AM. Under the legislation, employers are eligible for up to $25,000 per year in credits.
Senate Bill 6013 provides a tax credit to Virginia businesses for telecommuting expenditures and allows for a 100 percent tax credit for employers to conduct a telecommuting assessment the year prior to implementing a telecommuting program. Employers are eligible for a $1,200 credit per employee, capped at $20,000 per year.
Senate Bill 6014 creates an individual income tax deduction for using public transportation or carpooling. Individuals would be eligible to deduct up to 50 percent of the costs incurred using public transportation or take advantage of a $500 yearly deduction for carpooling, walking or biking to work.
