REGULATION PROMULGATING
TRAVELINK TRAFFIC MITIGATION ACT
Travelink Traffic Mitigation Regulations
The State of Delaware Code provides a tax credit via the Travelink Traffic Mitigation Act (67 DE Law, c 160, S 1.)to employers who develop and implement traffic mitigation plans submitted to and monitored by the Dept.of Transportation (DelDOT) to reduce commuter trip traffic congestion during peak travel periods and non-peak travel periods for Welfare to Work by supporting the use of alternate modes of employees commuting from their homes or within the proximity of their homes to their places of employment. Additionally, the DE Code requires all State Agencies to develop Traffic Migitation Plans to also be submitted to the Dept. of Transportation, DelDOT. The State Department of Transportation, DelDOT, is the responsible agency to develop rules and reviews all private employer and state agency traffic mitigation plans. DelDOT's rules include a list of required, recommended and additional transportation demand management strategies employers or state agencies may implement in their traffic mitigation plan. DelDOT's rules requires agencies to implement the required strategies (i.e., new employee orientation information on alternate and commute options; transportation fair held annually by the TMA of Delaware; posting and distribution of marketing materials from DART and TMA; preferential parking via signage and self-enforcing for vanpoolers and/or carpoolers); contact and meet with the RideShare Coordinator of the TMA to create a Commuter Corner on-site with marketing materials; and lastly, assign a Rideshare Coordinator or contact person within their agency to help administer the program and day to day operations of the program)within 6 months of plan approval; and provide a semi-annual program progress report for the first two years, annually thereafter. Private Employers and State Agencies may contact the Transportation Management Association of DE (TMA Delaware) organization to assist them with the development of their traffic mitigation plans. The TMA also provides other services in the development of their plans by surveying the employees; hosting Transportation Fairs; distributing marketing materials of alternative modes of commuting to/from worksites; and information on their "RideShare Delaware" and "HomeFree" programs.
The public comment period will end June 30, 2002. Comments may be sent to:
Catherine Dennis, Planning Manager,
Delaware Transit Corporation,
400 South Madison Street
Wilmington, DE 19801
In accordance with section 2034 of the TRAVELINK Traffic Mitigation Act, the Secretary of the Department of Transportation promulgates the following rules and regulation for effectuation of the aforesaid Act. The implementing rules and regulation shall be set forth as follows:
Sections:
1.0 Definitions
2.0 Approval Process
3.0 Tax Credit Calculation
4.0 Construction
5.0 Effective Date
1.0 Definitions
“Calculation of Tax Credit” shall mean determining the tax credit dollar amount using a straight 10% of allowed direct costs, or using the Participation Calculations method, as described in Section III of this regulation. The employer may select the calculation method to be used.
“Department” shall mean the Department of Transportation and its several divisions, agencies, authorities, and administrations as appropriate.
“Department Approved TRAVELINK Program”, referred to hereafter as the Employer’s Approved Plan, shall mean an employer’s or group of employers’ plan approved by the Department to reduce commute trip traffic congestion during peak travel periods and non-peak travel periods for Welfare to Work by supporting the use of alternate modes of employees commuting from their homes or within the proximity of their homes to their places of employment.
“Direct Cost” for the purpose of calculating the tax shall mean those un-reimbursed costs incurred by employers as part of the Employer’s Approved Plan, limited to the following:
Any employer- provided vehicles acquired or leased and used as part of the TraveLink Program
Maintenance of an employer-provided vehicle used in the plan
Subsidization of employee commuting costs or incentives in the form of direct payments to employees or third party providers of transportation, including public transit, in accordance with the Employer’s Approved Plan
Administrative costs, such as personnel costs (salary, benefits, training, but not overhead) and payments to third parties, other than the Department, for Administration of the Employer’s Approved Plan. Administrative costs are limited to levels specified in Section 2032 (c) (4) of the Act
Capital costs incurred as part of a Department-approved TraveLink program.
“Employee” shall mean an individual employed by an employer and shall also mean an individual participating in programs offered under the auspices of the Job Training Partnership Act.
“Employer” shall mean any person, partnership, association, bank, trust company, national bank, corporation, company, mutual company, joint-stock company, society, trust, unincorporated organization, trustee, trustee in bankruptcy, receiver, or other natural or artificial legal entity authorized to do business in this state, or any group, cooperative or association thereof, employing a minimum of one hundred (100) full-time employees or their equivalent reporting to a specific worksite during the peak periods. Employer plans which specifically target Welfare to Work employees are exempt from the peak period. In calculating equivalents an employer shall add up all the hours intended to be worked or actually worked by part time employees in the employer’s tax year, whichever is less, and divide the sum by 2000. The resulting number is the equivalent of full-time employees.
“Employer Provided Vehicles” shall mean any automobile, van, or bus, either owned, leased, chartered or subsidized by an employer, used in a ridesharing arrangement during peak travel periods and also non-peak travel periods for Welfare to Work programs provided, however, that a minimum of three employees commute in the vehicle during the specified periods in accordance with the Employer’s Approved Plan.
“Peak Travel Periods” shall mean between the hours of 6:30 a.m. and 9:30 a.m. and between the hours of 3:30 p.m. and 6:30 p.m.
“Ridesharing Arrangement” shall mean any voluntary association of employees who with the assistance, contribution, and/or promotion of their employers participate in an Employer’s Approved plan.
“Secretary” shall mean the Secretary of the Department of Transportation , or the Secretary’s duly appointed delegate.
2.0 Approval Process
In accordance with Section 2034 of the Act, procedures for the approval of an Employer’s plan are herein set forth.
2.1 Criteria for Approval Determination
2.1.1 Any Employer, as defined in this regulation, may submit a proposed traffic mitigation plan for consideration of approval by the Department. Proposed plans are to be submitted to the Department or designated agent.
2.1.2 For an Employer’s Plan to be considered for approval, it must contain at the minimum:
2.1.2.1 The number of employees arriving and departing during peak hours; and,
2.1.2.2 Traffic mitigation strategies to be implemented; and,
2.1.2.3 Identification of a marketing plan; and,
2.1.2.4 If an employer chooses to use the Participation Calculations, a description of a process capable of monitoring participation; and,
2.1.2.5 Identification of a contact person(s) who shall represent the employer and be the liaison between the Department and the employer; and,
2.1.2.6 The employer’s first tax year.
2.1.3 Information provided by employers, either in their TraveLink Program Application for approval or in the course of reporting on the participation in an Employer’s Approved plan, shall be treated as confidential and used only for the purpose of the Act and shall not be considered as a public record under the provisions of Chapter 100 of Title 29.If an employer has multiple employment sites in Delaware, the employer has the discretion of submitting to the Department for approval:
2.1.3.1 Site specific Employer’s Plans which shall be considered independently of one another: or,
2.1.3.2 The employer may submit a single Plan encompassing all participating facilities in Delaware; or,
2.1.3.3 The employer may request approval for clusters of participating facilities in a well-defined transportation corridor.
2.2 Department Approval Process
2.2.1 The Department, or designated agent, shall review all requests for approval in a timely manner. These regulatory provisions are in no way intended, nor shall they be used to exclude any employer from participating in the plan and the benefits available through the Act who may otherwise qualify. The following hierarchy shall be followed in determining the order for reviewing proposed Employer Plans, when the volume of requests for approval exceeds the Department’s ability to perform the reviews in a timely manner, approval priority will be given to those employers who (whose):
2.2.1.1 Develop a mitigation plan targeted to Welfare to Work clients; or,
2.2.1.2 Place of employment is adjacent to, or for which the predominant commuting routes of employment, are those roads and highways at Level of Service(LOS) D or lower during peak travel periods, as identified by the Department; or,
2.2.1.3 Current or existing approved Plan is about to expire; or,
2.2.1.4 Develop an ongoing marketing plan directed towards and capable of increasing and sustaining employee participation over time; or,
2.2.1.5 Develop a mitigation plan which delineates goals and congestion relief techniques, extending beyond any plans or programs of the employer, existing prior to February 6, 1990
2.2.2 The Department shall review each request for approval on the basis of:
2.2.2.1 A monitoring plan capable of providing reliable annual data on employee participation only where an employer chooses to use the Participation Calculations.
2.2.2.2 A process of implementation which demonstrates the employer’s commitment to traffic reduction and includes a well-defined Plan to promote and market participation among employees.
2.2.3 Upon completing review of an Employer’s TraveLink Program Application, the Department shall:
2.2.3.1 Grant the requested approval for not less than one, but no more than five years and inform the employer of same in a Notice of Approval.
2.2.3.2 Deny approval if minimum requirements of this regulation are not met.
2.2.3.3 Provide a copy of each Notice of Approval to the Division of Revenue.
3.0 Tax Credit Calculation
Calculation of the tax credit shall be performed in accordance with section 2033 of the Act as detailed in this regulation.
3.1 Calculation of the tax credit shall be based upon the unreimbursed direct costs as defined in the Act and this regulation. Employers shall maintain records of direct costs associated with their Approved Plan in a manner and form consistent with generally accepted accounting principles. Said records shall be maintained and available for audit by the Division of Revenue in a manner consistent with prescribed procedures for tax records as set forth by the Division of Revenue.
3.2 When an employer has more than one Employer Approved Plan, the employer may calculate a credit for each Approved Plan, based upon unique rates of participation and associated direct costs and claim the aggregate of these calculations as its credit, or the employer may combine all direct costs and apply a combined rate of participation in calculating the credit.
3.3 The tax credit to be taken by an employer can be calculated using one of the following options:
3.3.1 Ten percent (10%) credit calculation which allows employers to claim a tax credit for ten percent (10%) of the allowable direct cost (DC) of developing, implementing, and maintaining the plan; or,
3.3.2 Participation Calculations for employers who anticipate a greater than ten percent (10%) employee participation rate. Selection of the Participation Calculations requires both calculations to be performed. The tax credit will be the lesser of the two products derived from the following equations:
3.3.2.1 TC = CTR/CTG X DC; or
3.3.2.2 TC = CTR x $250, where
TC represents the amount of the Tax
Credit
CTR represents the number of employees
participating in the traffic reduction
plan for at least 100 days of the
applicable tax year
CTG represents the number of employees
eligible to participate in the traffic
reduction plan
DC represents the unreimbursed direct
costs the Employer incurs through the
traffic reduction plan.
3.4 Employers eligible for tax credits under the Act shall claim a credit, as calculated in Section C above, against the taxes and/or fees imposed by the following statutory provisions and such credit shall be taken annually at the conclusion of the tax year:
3.4.1 Chapter 11 of Title 5;
3.4.2 Sections 702 and 703 of Title 18;
3.4.3 Chapter 19 of Title 30;
3.4.4 Section 2702 (b) of Title 30;
3.4.5 Chapter 33 of Title 30;
3.4.6 Section 2301(d) of Title 30;
3.4.7 Section 2902 (c) of Title 30;
3.4.8 Section 2903 (c) of Title 30;
3.4.9 Section 2904 (c) of Title 30;
3.4.10 Section 2905(b)(1) of Title 30;
3.4.11 Section 2906 (c) of Title 30; or
3.4.12 Section 2907 (c) of Title 30.
Credits shall be taken by the employer against taxes in the order specified above.
3.5 The amount of the credit allowable under this Act for any taxable year shall not exceed 100 percent of the amount of taxes and/or fees imposed upon the employer by the statutes referred to in Section D above, for such taxable year (computed without regard to this section).
3.6 The amount of the credit for any taxable year that is not allowable for such taxable year solely as a result of the limitation contained in Section E above, shall be a credit carryover for up to three subsequent taxable years, as provided in Section 2033 (d) of the Act.
3.7 Total amount of funding available for eligible credits allowed for the TraveLink Program is limited to the amount established by the General Assembly. (72 Del. Laws, c 188 § 17).
3.8 If the total of TraveLink tax credits for which all employers apply in any State of Delaware fiscal year, exceeds the amount set forth in subsection §2037 (a) of the TraveLink Traffic Mitigation Act, then the TraveLink tax credit to be received by cash applicant for that year shall be the product of the amount set forth in subsection §2037 (a) of the Act multiplied by a fraction, the numerator of which is the eligible TraveLink credits applied for by the applicant and the denominator of which is the total of all eligible TraveLink credits applied for by the applicants.
4.0 Construction
4.1 To effectuate the purpose and intent of the Act this regulation shall be liberally construed and broadly interpreted.
4.2 If any provisions of this regulation shall be held invalid, the remainder of the Regulation shall not be affected thereby.
5.0 Effective Date
This Regulation shall be effective immediately upon signature of the Secretary of the Department of Transportation, or the Secretary’s duly appointed delegate.
SO ORDERED THIS _____ DAY OF _____, 2002
Signature