SB 9 — AN ACT SUPPORTING COMMUTERS AND MICROTRANSIT SERVICES AND CONCERNING PUBLIC TRANSPORTATION.

General Assembly Substitute Senate Bill No.

9 FebruaryPublic Session,Act 2026No. AN ACT SUPPORTING COMMUTERS AND MICROTRANSIT SERVICES.

26-21 AN ACT SUPPORTING COMMUTERS AND MICROTRANSIT SERVICES AND CONCERNING PUBLIC TRANSPORTATION.

(1) "Eligible employer" means any corporationentity licensed to operate a business in the state that is subject to thethetax tax imposed under chapter 208207, or 228z of the general statutes, employs at least five employees in the state and provides a qualified commuter transportation benefit to one or more participating employees.

(2) "Qualified commuter transportation benefit" means any benefit provided by an eligible employer to an employee for the purpose of commuting between the employee's residence and place of employment, including (A) transportation in a commuter highway vehicle, as defined in 26 USC 132(f)(5), as amended from time to time, (B) any transit pass entitling the holder of such pass to transportation on public transit services, (C) participation in the CTpass program established pursuant to section 13b-38ee of the general statutes, and (D)(B) any other transportation benefit that qualifies as a qualified LCOtransportation 1fringe ofunder 526 SubstituteUSC Bill132(f), No.as amended from time to time.

9"Qualified commuter transportation fringebenefit" underdoes 26not USCinclude 132(f),Substitute asSenate amendedBill fromNo. time to time.

"Qualified9 commuter transportation benefit" does not include reimbursement for fuel or mileage for the use of a single occupancy vehicle to commute between the employee's residence and place of employment;

and (3) "Participating"Qualified employee"commuter meansbenefit anexpenditures" employeemeans whoamounts workspaid ator leastincurred twentyby hoursan pereligible weekemployer induring the stateincome andyear receivesto provide a qualified commuter transportation benefit.benefit to participating employees pursuant to an approved commuter benefit plan;

(b)(4) For"Approved incomecommuter yearsbenefit commencingplan" onmeans ora afterwritten Januaryproposal 1,submitted 2027,by anyan eligible employer whoand providesapproved aby qualified commuter transportation benefit to one or more participating employees shall be allowed a credit against the taxCommissioner imposed under chapter 208 of theTransportation; general statutes.

Theand amount(5) of"Participating suchemployee" creditmeans shallan beemployee equalwho toworks fiftyat perleast centtwenty ofhours theper increase,week if any, in the totalstate costand ofreceives thea qualified commuter transportation benefitbenefit. provided to participating employees during the income year that exceeds the total cost of such benefit provided during the immediately preceding income year.

(c)(b) IfFor anincome eligibleyears employercommencing didon notor provideafter anyJanuary qualified1, commuter2027, transportationand benefitfor in the immediatelyfirst precedingfive income year,years thein entirewhich amountan ofeligible theemployer provides a qualified commuter transportation benefit providedpursuant into thean currentapproved incomecommuter yearbenefit plan, such eligible employer shall be deemedallowed toa becredit against the increasetax forimposed purposesunder ofchapter subsection207, (b)208 or 228z of thisthe section.general statutes.

(d) The creditamount allowedof undersuch thiscredit section shall notbe exceedequal fiveto: hundred dollars per participating employee per year calculated with respect to the increase in the qualified commuter transportation benefit describedinsubsection(b)ofthissection.Thetotalamountofthecredits authorized under this section shall not exceed one million five hundred thousand dollars in any income year.

(e)(1) AnTwenty-five employerper seekingcent toof claimthe aqualified creditcommuter underbenefit thisexpenditures sectionmade shallin applythe tofirst income year in which such expenditures are made, (2) twenty per cent of the Commissionerqualified commuter benefit expenditures made in the second income year in which such expenditures are made, (3) fifteen per cent of Transportationthe forqualified acommuter taxbenefit creditexpenditures vouchermade andin shallthe providethird withincome year in which such expenditures are made, (4) ten per cent of the applicationqualified commuter benefit expenditures made in the fourth income year in which such documentationexpenditures are made, and independent(5) certificationfive asper cent of the commissionerqualified maycommuter requirebenefit pertainingexpenditures LCOmade 2in ofthe 5fifth Substituteincome Billyear No.in which such expenditures are made.

9Public toAct theNo. amount of the qualified commuter transportation benefit and certifying that such benefit was actually provided to eligible employees.

If26-21 the2 commissionerof determines9 thatSubstitute suchSenate employerBill isNo. eligible to be issued a tax credit voucher, the commissioner shall enter on the voucher the amount of the credit allowed.

The9 commissioner(c) shallAn provideeligible aemployer copyseeking to claim the credit under the provisions of suchthis vouchersection shall submit an application to the Commissioner of RevenueTransportation, Servicesin uponsuch request.form and manner prescribed by the commissioner.

(f)Such Theapplication Commissionersshall ofdescribe Transportationthe andeligible Revenueemployer's Servicesproposed may,commuter forbenefit purposesplan ofand determininginclude (1) the correctnesstype of anyqualified creditcommuter claimedtransportation pursuantbenefits to thissection,examinebe anyestablished books,papersandrecordsrelatingor expanded, (2) the projected qualified commuter benefit expenditures to be made over the documentationfive-year providedperiod, with(3) anthe applicationnumber forof aparticipating taxemployees creditexpected voucherto underbe thiscovered, section.and (4) any additional information as the commissioner may require.

Upon approval of an application and commuter benefit plan, the commissioner shall determine and reserve the amount of the credit the eligible employer will be entitled to claim over the five-year period.

(d) On an annual basis, an eligible employer shall submit documentation to the Commissioner of Transportation demonstrating actual qualified commuter transportation benefit expenditures made pursuant to the approved commuter benefit plan.

Upon verification of such expenditures, the commissioner shall issue a voucher to the employer in the amount of the applicable credit percentage under the provisions of subsection (b) of this section.

(e) If an eligible employer notifies the commissioner that such employer is discontinuing its approved commuter benefit plan or fails to submit required annual documentation within a reasonable time period established by the commissioner, the commissioner shall issue a written notice of noncompliance to such employer.

If the employer does not address such noncompliance not later than ninety days after such notice, the commissioner shall revoke approval of the commuter benefit plan and any reserved credit associated with such employer.

(f) Any credit not used in the income year for which it was allowed may be carried forward and credited against the taxes imposed for the three immediately succeeding income years or until the full credit has Public Act No.

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9 been allowed, whichever occurs first.

(g) Any credit allowed pursuant to this section may be sold, assigned or otherwise transferred, in whole or in part, to one or more taxpayers subject to chapter 208 of the general statutes, and such taxpayers may sell, assign or otherwise transfer, in whole or in part, such credit.

(h) The Commissioners of Transportation and Revenue Services may examine any books, papers or records relating to an approved commuter benefit plan or any credit claimed under the provisions of this section for purposes of verifying compliance and accuracy.

(i) The total amount of all tax credits which may be reserved by the Commissioner of Transportation pursuant to this section shall not exceed seven million five hundred thousand dollars.

Section 23 of public act 22-40 is amendedrepealed toand readthe asfollowing followsis (EffectivePublic JulyAct 1,No. 2026):

(a)26-21 As4 used in this section, "microtransit" means transportation by a multipassenger vehicle that uses a digital network or software LCO 3 of 59 Substitute Senate Bill No.

9 applicationsubstituted service to offer fixed or dynamically allocated routes and schedules in responselieu tothereof individual(Effective orJuly aggregate1, consumer2026): demand.

(a) As used in this section, "microtransit" means transportation by a multipassenger vehicle that uses a digital network or software application service to offer fixed or dynamically allocated routes and schedules in response to individual or aggregate consumer demand.

(Effective Julyfrom 1,passage) 2026)(a) The sum of ten$4,000,000 millionof fivethe hundredamount thousandappropriated dollarsin issection appropriated2 of public act 25-168 to the Department of TransportationTransportation, fromfor theRail SpecialOperations, Transportation Fund, for the fiscal year ending June 30, 2027, forshall thebe continuationmade ofavailable thein pilotsaid programfiscal toyear testfor microtransit services in the stateShore establishedLine pursuantEast torail sectionline. 23 of public act 22- 40, as amended by this act.

(b) The sum of $3,000,000 of the amount appropriated in section 2 of public act 25-168 to the Department of Transportation, for Rail Operations, for the fiscal year ending June 30, 2027, shall be expended in said fiscal year for the purpose of increasing service on the Shore Line East rail line.

Section 13b-38h of the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2026):

Public Act No.

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9 (a) The Department of Transportation shall provide for changes in fares for mass transportation by land in accordance with the provisions of this section and shall not be required to conform to the procedures in chapter 54.

(b) Prior to adopting any [change] increase in fares for mass transportation by land, the department shall (1) give notice of the proposed fare [change] increase, its amount and the date and time it is proposed to take effect by advertising, at least once, in one or more newspapers having [general] circulation in all areas [of the state] that [may] would be affected by such [change in fares] proposed fare increase, and (2) in such notice, provide information on the date, time and place a public hearing is to be held on such proposed [change] fare increase.

Such notice shall be provided at least fifteen days prior to such public hearing.