🔒Microtransit bill clears key panel; adds funding, broadens employer incentives

A revised version of a bill intended to sustain Connecticut’s microtransit services and expand commuter support programs was overwhelmingly approved with bipartisan support by a key legislative committee on Monday. The legislature’s Finance, Revenue and Bonding Committee voted 48-0, with six members absent, to advance Senate Bill 9, which focuses on the state’s microtransit pilot program. The program provides on-demand, app-based shared rides intended to close gaps in traditional bus and rail service, particularly for commuters traveling to and from work. The bill, which was initially raised and approved 32-4 by the Transportation Committee, also significantly expands eligibility for a tax credit for businesses that participate in a traffic reduction program. The version approved Monday, though, differs in key ways from an earlier draft that emerged from the Transportation Committee. Most notably, lawmakers increased the funding in the bill to $10.5 million, up from $9 million in an earlier version. Also, while the prior bill focused primarily on continuing the pilot program’s operations, the revised measure shifts the emphasis toward both short-term continuation and a formal evaluation of the service. The change reflects debate among lawmakers and budget officials over whether to make microtransit a permanent part of the state’s transportation system after federal pandemic-era aid that initially supported the program expires. The revised bill was unanimously approved by the Appropriations Committee before being sent to the Finance Committee. Under the updated bill, funding would effectively serve as a bridge, keeping services running while the state studies their performance, cost-effectiveness and long-term viability of the program. The bill also expands the state’s existing commuter tax credit program, which is intended to encourage employers to help workers rely less on traveling alone to work. The bill would allow businesses with as few as five employees to participate, significantly expanding the existing program that mostly limits it to large employers. The credit allows employers to offset a portion of the costs associated with offering commuter benefits — such as transit subsidies, vanpool programs or other transportation demand management initiatives. Companies can receive a credit covering up to 50% of eligible expenses, capped at $500 per participating employee annually, with an overall statewide cap for the program of $1.5 million. The bill is now expected to be placed on the Senate calendar for consideration before the legislative session ends on May 6.