Substitute Senate Bill No. 9, also known as Public Act No. 26-21, establishes a new tax credit program to incentivize employers who provide qualified commuter transportation benefits to their employees. Starting January 1, 2027, eligible employers with at least five employees can receive a tax credit based on their qualified expenditures over five years, beginning at 25% in the first year and decreasing to 5% by the fifth year. Employers must apply for an approved commuter benefit plan through the Commissioner of Transportation, who will verify expenditures and issue vouchers for the credits. The total tax credits available are capped at $7.5 million. Additionally, the bill introduces a three-year pilot program for microtransit services in areas lacking public transportation, with the Commissioner of Transportation responsible for its implementation and reporting by January 1, 2028. It also allocates $4 million for the Shore Line East rail line and $3 million for service enhancements by June 30, 2027.

Furthermore, the bill modifies the procedures for fare increases in mass transportation by allowing the Department of Transportation to implement fare increases without following the standard procedures in chapter 54. The department must provide notice of proposed fare increases through local newspaper advertisements and hold a public hearing, while also notifying relevant legislative committees and the Connecticut Public Transportation Council at least fifteen days prior to the hearing. The bill also creates new grant programs through the Department of Education for local boards of education to purchase public transportation passes for high school students and through the Department of Veterans Affairs to distribute free transportation passes to veterans. It includes provisions for annual reporting on these grants and repeals certain sections of the general statutes related to fare changes, ensuring they are not subject to the same administrative procedures as other regulations.

Statutes affected:
Committee Bill: 12-217s
Public Act No. 26-21: