TOOLS FOR WORKSITES

Subsidies and Incentives

Subsidies and incentives are benefits the employer provides to employees that lowers the cost of the commute or rewards employees for using a mode other than driving alone.  The range of subsidies and incentives include: 

• Free or discounted bus passes
• Full or partially subsidized vanpool fees
• Cash or vouchers for using a commute mode other than driving alone
• Free or discounted parking for those who share the ride

Some of the benefits of a commute subsidy or incentive include the fact that they are:

• Considered an attractive benefit by employees
• Effective in reducing SOV trips
• May have a financial benefit to the employer and employee (e.g., tax breaks)
• May directly support the mission and goals of the organization

State Agencies should review guidelines on subsidies and incentives at www.ctr.wa.gov/employers/guide.htm

Here are some things that you as the ETC can do to set up a CTR subsidy and/or incentive program:

• Conduct research.  Find out as much as you can about your employees, your worksites, and your organizational culture in relation to a potential subsidy\incentive program.
• Identify internal experts.  Bring together and work with internal parties that might be impacted, including: benefits/payroll specialists, tax accountants, union representatives, legal counsel, and finance administrators.
• Develop a program plan.  Identify the types of subsidies or incentives employees will receive; who will be eligible; the amount, method and frequency of payments for each commute subsidy; and the cost of the program.
• Obtain management support.  After outlining the basis plan, seek management support and funding.  It helps to think about what motivates management and sell the program accordingly.  It is also helpful to identify a management "champion" who will support the plan, before you present it to management.
• Establish how the program will be administered.  Once you have approval, adopt written policies, develop a way to identify and track participants and payments, establish a process for transferring the subsidy to eligible employees, and implement a mechanism for tracking tax information.