Connecticut SB 9: AN ACT SUPPORTING COMMUTERS AND MICROTRANSIT SERVICES AND CONCERNING PUBLIC TRANSPORTATION.

Bill Text

Substitute Senate Bill No. 9 
 
Public Act No. 26-21 
 
 
AN    ACT    SUPPORTING    COMMUTERS    AND    MICROTRANSIT 
SERVICES AND CONCERNING PUBLIC TRANSPORTATION. 
Be  it  enacted  by  the  Senate  and  House  of  Representatives  in  General 
Assembly convened: 
 
Section  1.  (NEW)  (Effective  January  1,  2027,  and  applicable  to  income 
years commencing on or after January 1, 2027) (a) As used in this section: 
(1)  "Eligible  employer"  means  any  entity  licensed  to  operate  a 
business in the state that is subject to the tax imposed under chapter 207, 
208  or  228z of  the  general  statutes,  employs at  least  five  employees  in 
the  state  and  provides  a  qualified  commuter  transportation  benefit  to 
one   or   more   participating   employees.   For   the   purposes   of   this 
subdivision, the number of employees shall  be the average number of 
employees employed during the preceding twelve months; 
(2)  "Qualified  commuter  transportation  benefit"  means  any  benefit 
provided  by  an  eligible  employer  to  an  employee  for  the  purpose  of 
commuting    between    the    employee's    residence    and    place    of 
employment,   including   (A)   participation   in   the   CTpass   program 
established pursuant to section 13b-38ee of the general statutes, and (B) 
any    other    transportation    benefit    that    qualifies    as    a    qualified 
transportation  fringe  under  26  USC  132(f),  as  amended  from  time  to 
time.  "Qualified  commuter  transportation  benefit"  does  not  include 

Substitute Senate Bill No. 9 
 
Public Act No. 26-21 2 of 9 
 
reimbursement  for  fuel  or  mileage  for  the  use  of  a  single  occupancy 
vehicle  to  commute  between  the  employee's  residence  and  place  of 
employment; 
(3) "Qualified commuter benefit expenditures" means amounts paid 
or incurred by an eligible employer during the income year to provide 
a qualified commuter transportation benefit to participating employees 
pursuant to an approved commuter benefit plan; 
(4)  "Approved  commuter  benefit  plan"  means  a  written  proposal 
submitted by an eligible employer and approved by the Commissioner 
of Transportation; and 
(5) "Participating employee" means an employee who works at least 
twenty hours per week in the state and receives a qualified commuter 
transportation benefit. 
(b) For income years commencing on or after January 1, 2027, and for 
the  first  five  income  years  in  which  an  eligible  employer  provides  a 
qualified  commuter  transportation  benefit  pursuant  to  an  approved 
commuter benefit plan, such eligible employer shall be allowed a credit 
against  the  tax  imposed  under  chapter  207,  208  or  228z  of  the  general 
statutes. The amount of such credit shall be equal to: (1) Twenty-five per 
cent  of  the  qualified  commuter  benefit  expenditures  made  in  the  first 
income year in which such expenditures are made, (2) twenty per cent 
of  the  qualified  commuter  benefit  expenditures  made  in  the  second 
income year in which such expenditures are made, (3) fifteen per cent of 
the qualified commuter benefit expenditures made in the third income 
year  in  which  such  expenditures  are  made,  (4)  ten  per  cent  of  the 
qualified  commuter  benefit  expenditures  made  in  the  fourth  income 
year in which such expenditures are made, and (5) five per cent of the 
qualified commuter benefit expenditures made in the fifth income year 
in which such expenditures are made. 

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(c)  An  eligible  employer  seeking  to  claim  the  credit  under  the 
provisions   of   this   section   shall   submit   an   application   to   the 
Commissioner of Transportation, in such form and manner prescribed 
by   the   commissioner.   Such   application   shall   describe   the   eligible 
employer's proposed commuter benefit plan and include (1) the type of 
qualified   commuter   transportation   benefits   to   be   established   or 
expanded, (2) the projected qualified commuter benefit expenditures to 
be  made  over  the  five-year  period,  (3)  the  number of  participating 
employees expected to be covered, and (4) any additional information 
as the commissioner may require. Upon approval of an application and 
commuter benefit plan, the commissioner shall determine and reserve 
the amount of the credit the eligible employer will be entitled to claim 
over the five-year period. 
(d)   On   an   annual   basis,   an   eligible   employer   shall   submit 
documentation  to  the  Commissioner  of  Transportation  demonstrating 
actual  qualified  commuter  transportation  benefit  expenditures  made 
pursuant to the approved commuter benefit plan. Upon verification of 
such  expenditures,  the  commissioner  shall  issue  a  voucher  to  the 
employer  in  the  amount  of  the  applicable  credit  percentage  under the 
provisions of subsection