Controller Connell and Senator Polanco Announce Giving Tax Breaks to Employers
And Employees Who Use Alternative Work Schedules
SAN JOSE, Calif., March 28 /PRNewswire/ -- State Controller
Kathleen Connell and Senator Richard Polanco (D-Los Angeles), announced the
introduction of legislation designed to give tax credits to qualified
employers and employees of Santa Clara County who use alternative work
schedules to reduce near-standstill traffic during rush hours. The bill,
SB 2021, would give a $500 tax credit to each qualified employer and employee
who participates in a pilot program that aims to reduce traffic during the
worst hours of congestion.
"The severity and impact of traffic congestion in Santa Clara County has
reached a crisis point, with traffic gridlock costing Santa Clara County's
workers and businesses an astounding $77 million annually and 29,000 hours
each workday," said Connell, sponsor of the bill. "Santa Clara County has
frustratingly seen increases of 20 percent annually from 1996 to 1998, ranks
fifth in the state for daily delay and traffic congestion, and experiences
commuter congestion on 93 miles of highways," added Connell, citing statistics
from the Department of Transportation.
"This bill not only promises a reduction in traffic congestion and
improved worker productivity but also improved air quality," said
Senator Polanco. Polanco stated that traffic congestion in his Los Angeles
district spurred him to author the bill. "This is a practical, common sense
solution that makes more efficient use of the infrastructure we already have,"
Sen. Polanco added.
SB 2021 would offer to a qualified taxpaying employer, on or after
January 2, 2001, a $500 income tax credit for every employee placed on an
alternative work schedule. Only newly created positions would be eligible.
For part-time employees, the employer could aggregate to obtain the credit,
such as five people who telecommute one day a week.
This same $500 credit would be available to the employee who takes
advantage of this alternative work schedule. Full-time employees eligible
would meet certain qualifications such as three days telecommuting per week or
work a compressed schedule. Employees also must travel a minimum of nine
miles to their workplace and commute outside of times other than between
6:30 a.m. and 8:30 a.m., and that end at times other than between 4:00 p.m.
and 6:00 p.m.
Across the state, Californians are losing more than 400,000 hours each
workday to traffic problems. The pilot program is planned to be launched in
regions of the state suffering from the worst traffic congestion. In
Northern California, the counties include Santa Clara, San Francisco,
San Mateo, Contra Costa, Alameda, Marin, Napa, Sonoma and Solano.
Southern California counties include Los Angeles, Ventura and Orange. The
bill will remain in effect for five years, but after four years, the
Franchise Tax Board will report to the Legislature on the annual total amount
of tax credits claimed under this act.
"Once the pilot program rolls out in areas suffering from major congestion
in Northern and Southern California, other parts of the state may follow,"
noted Connell, who also chairs the Franchise Tax Board. "We need to seriously
consider such innovative solutions as alternative work schedules geared around
telecommuting, flextime, compressed workweeks and weekend workdays to
significantly decrease the amount of traffic in congested areas."
"Not all solutions can be found in brick and mortar," Sen. Polanco said.
"We need to 'look outside the box' and identify creative solutions that make
sense and save dollars. SB 2021 promises to do just that."
The bill is set for hearing in the Senate Revenue and Taxation Committee
on April 12, 2000.
For more information, visit the State Controller's Web site at
http://www.sco.ca.gov or Senator Polanco's at http://www.sen.ca.gov.
SOURCE California State Office of the Controller
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Related links:
http://www.sco.ca.gov
CONTACT:
Byron Tucker or Susie Wong of the CA State
Controller's Office, 916-445-2636, or Bill Mable for Senator
Polanco's Office, 213-620-2529
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