Carpool Incentives for the Portland Metro Area
Reduce your commuting costs even more by taking advantage of some of the available incentives. Your employer may already offer incentives. If not, you may want to ask them to consider it.
Portland Area Carpool Incentives:
- Companies can offer incentives for carpoolers that include cash, gift certificates or vouchers that apply to the cost of regular automobile maintenance, gas or parking. Many large employers including the City of Portland offer an incentive to carpool or vanpool.
- Federal and Oregon state tax laws make it possible for your business to offer a pre-tax transportation program to your employees. Because pre-tax deduction reduces the amount of employees’ taxable earnings, it also reduces the amount of FICA and unemployment taxes your company must pay. Pre-tax deductions can include vanpool fares and transit passes.
- Your company may also take a tax credit equal to 35% of the eligible costs for transportation-related programs such as subsidizing part or all of your employees’ vanpool costs. For more information, contact the Oregon Department of Energy at 1-800-221-8035.
- Tax Breaks – The IRS allows certain commute trip elements like transit passes to be paid for by an employee using pre-tax income, which equates to lower payroll taxes. Tax-free fringe benefits allow employers to offer employees monetary incentives as well. Employers and property managers who also provide commute trip reduction programs incentives to or on behalf of their own or other employees are eligible for a credit against their business and occupation (B&O) tax or public utility tax (PUT) liability.
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