Tax Breaks for Your Business

You can reduce taxable earnings and save money for your company (and employees) on federal or state taxes, or both!

Oregon's Business Energy Tax Credit (BETC)

When it comes to state business taxes, the Oregon Business Energy Tax Credit (BETC) can really pay off. BETC allows your company to take a tax credit equal to 350f the eligible costs for transportation-related programs such as:

• Subsidizing all or part of your employees' monthly or annual TriMet passes through TriMet's transit pass programs
• Purchasing equipment that allows employees to work from home
• Offering financial incentives for employees to carpool because of limited public transportation during your shift hours
• Buying equipment to store bicycles
• Financially supporting a Transportation Management Association (TMA)

For more information on Oregon's BETC program or to request an application, contact the Oregon Department of Energy at 1-800-221-8035.

Subsidy-related federal tax benefits

Offering a transit subsidy gives employees more and costs employers less than a comparable salary increase or bonus. If your company pays for any part of an employee's transit pass or vanpooling costs, you may be able to claim the costs as an allowable business expense on your taxes.

Federal and Oregon state tax laws allow tax-free transit benefits, up to $1,200 per employee, per year. For more information on subsidy-related tax benefits, refer to IRS Publication 15-B (Rev. February 2007). Also check with your tax advisor.

Pre-tax payroll deductions

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 on employees' income. For more information on pre-tax payroll deductions, see the Internal Revenue Code-Section 132 (F), as amended by TEA-21, Title IX, Section 910. Also check with your tax advisor.