COtax_creditpct_of_investmentrefundable
Alternative Transportation Options Credit
CO-ATO-TC · Colorado
Summary
Refundable Colorado income tax credit equal to 50% of an employer's expenses for providing alternative transportation options (carsharing, bikesharing, ridesharing, transit, vanpool, etc.) to its Colorado employees. Capped at $125,000 per employer per year, with a sub-limit of $2,000 per employee. Eligible employers must have ≥3 Colorado employees. Tax-exempt entities (nonprofits, home-rule cities/towns/counties, statutory cities/towns/counties) may also claim. Available for tax years 2023-01-01 through 2026-12-31. Annual Employer Plan Report (DR 1323) required as a prerequisite for claiming.
Benefit
- Percentage
- 50% of investment
- Flat
- —
- Duration
- —
- Max annual
- $125,000 (taxpayer)
- Max total
- — (taxpayer)
- Carryforward
- —
Program metadata
- Distribution
- taxpayer_earned
- Claimant subject
- business
- Refund/transfer election
- refundable_only
- Program family
- —
- Effective
- —
- Sunset
- 2026-12-31
- Application deadline
- —
- Transfer discount
- —
Hard requirements (1)
- min_existing_employeesEmployer must have at least 3 employees in Colorado to qualify.
Preference / tiering rules (0)
None.
NAICS industries (0)
Any.
Geo zones (1)
- statewide — · Colorado Statewide
Tags (3)
- per_employee_cap_usd: 2000
- annual_employer_plan_report_form: DR_1323
- tax_exempt_entities_eligible: true
Source
§ 39-22-509, C.R.S.; HB22-1026
Last verified: 2026-04-30
CO-statewide. Per-employee sub-cap of $2,000 modeled as tag. Annual prerequisite: file DR 1323 with CDOR before claiming the credit. Includes administrative costs of organizing/establishing/administering the alternative-transportation programs. Excludes school transportation for K-12 students.