Colorado DOR Updates Guidance on Alternative Transportation Options Credit

The Colorado Department of Revenue (DOR) has issued revised guidance on the Alternative Transportation Options Credit, a refundable income tax credit available for tax years beginning on or after Jan. 1, 2023, and before Jan. 1, 2027. The credit equals 50 percent of qualifying expenses, capped at $125,000 annually with a $2,000 per-employee limit, and is available to qualifying employers with at least three Colorado employees. Eligible expenses include micromobility, ridesharing, mass transit subsidies, carsharing, guaranteed ride home programs, parking cash-out programs, walking programs, and related administrative costs. Employers must file Form DR 1323, Annual Employer Plan Report, and claim ...