BETC – Business Energy Tax Credit

It's possible for you to reduce your company's taxable earnings, and reduce the taxes paid by your employees at the same time. Offering employees a commute subsidy or even just a pre-tax flexible spending account can save your company money on federal or state taxes, or both!

Example of savings with BETC

Number of Employees	1	100
1 year of TriMet passes	$792	$79,200
BETC Tax Credit (35%)	$277.20	$27,720
Actual cost to employer	$514.80	$51,480

Are you already purchasing annual passes for your employees? There are many ways to review your current transportation plan and apply current spending toward the BETC tax credits.

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 the IRS Code Procedure 95-53, paragraph 1 132-6T (d) (1). Also check with your tax advisor.

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 In-House Sales, Passport or Snap Pass programs
• Purchasing equipment that allows employees to work from home (telecommuting)
• Purchasing and operating a vehicle for shuttling employees to a MAX station or transit center (shuttle van )
• 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)

Example of savings with pretax payroll deductions

	Employee Cost	Employer Cost
12 All-Zone TriMet monthly passes	$792	0
Approximate federal tax savings (15/5)	($118.80)	0
Approximate FICA savings	($60.59)	($60.59)
Approximate unemployment tax savings (3.3% average)	0	($26.14)
Approximate state tax savings (9%)	($71.28)	0
Total savings with pre-tax deductions	($250.67)	($86.73)

Example of savings with transit pass subsidy

	Transit Pass	Salary Increase
Annual Cost	$744	$744
Employer FICA (7.65%)	0	$56.92
Employer unemployment tax (3,3% average)	0	$24.55
Total cost to employer	$744	$825.47

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