Tax Credit for Public Transit
Green energy tax credits, including credits to emphasize public transportation for employees and develop new fuel technologies, abound at the state and federal levels for businesses across the country. These incentives allow states to transition public transportation fleets to renewable forms of energy with help from the private sector. Individual taxpayers, however, may find it more difficult to obtain these tax debt reducing incentives for simply using public transportation.
Other People Are Reading
-
Business Green Tax Credits
-
A business emphasizing public transportation for its workforce can stand to earn lucrative green energy tax credits from the federal government. According to American Public Media's website, in May 2011 technology giant Panasonic earned $100 million in Internal Revenue Service green energy tax credits just by moving facilities away from Secaucus, New Jersey, and closer to public transportation in Newark -- specifically Newark Penn Station. The total distance involved in moving the company's business locations closer to public transit stations was about 10 miles.
Business Public Transportation Credits
-
Many states across the country offer varying tax incentives for employers to emphasize public transportation for employees. For example, according to the Oregon Department of Energy's website, employers choosing to purchase public transportation passes or providing subsidized transit passes for employees can apply for the state's Business Energy Tax Credit Program. As of July 2011, the transportation incentive portion of this program allows for a 25 percent tax credit based on the cost of purchasing employee transit passes purchased through 2012. The state will steadily decrease this tax credit over a three-year period ending at 10 percent.
-
Public Transportation Fuel Credits
-
In response to growing demands for renewable energy sources for vehicles, states across the country have moved to renewable energy technologies and alternative fuels for public transportation vehicles. For example, according to the U.S. Department of Energy's website, states such as Nebraska provided tax incentives and credits to businesses and government departments to assist in transitioning public transportation fleets to alternative and renewable fuels. As of 2010, nearly 50 percent of public transportation vehicles in Nebraska use renewable fuels, with the goal of achieving 100 percent of vehicles by 2025.
Personal Tax Incentives
-
As of 2011, the IRS does not provide a tax credit for the use of public transit for personal or business use. There are several options for netting a tax deduction for using public transit, but these deductions do not offer the same benefits as a tax credit. A deduction only reduces the taxpayer's gross income for determining which tax bracket the taxpayer falls in. A tax credit directly reduces the amount of money the taxpayer owes the IRS.
-
