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Bill that would offer commuters tax credit is under consideration in Annapolis

Bill that would offer commuters tax credit is under consideration in Annapolis
DAVID: NO MATTER HOW FUEL-EFFICIENT YOUR VEHICLE IS, THE DRIVE TO WORK CAN BE EXPENSIVE. THIS FIRST OF ITS KIND LEGISLATION IN THE COUNTRY GIVES COMMUTERS A FINANCIAL BREAK. REPORTER: GETTING PAID TO BE STUCK IN TRAFFIC. THOSE DRIVING AT LEAST 40 MILES ROUND-TRIP TO WORK WOULD GET A TAX CREDIT IF A NEW BILL IN ANNAPOLIS PASSES. >> I THINK THAT WOULD BE A GOOD IDEA FOR COMMUTERS. REPORTER: WHAT WOULD YOU DO WITH THE MONEY? >> I WOULD PROBABLY USE IT FOR, PROBABLY BACK IN THE ECONOMY FOR SOME ENTERTAINMENT. REPORTER: SENATOR ARTHUR ELLIS A DEMOCRAT FROM CHARLES COUNTY IS SPONSORING THE BIL >> NO MATTER HOW GREAT THE GAS MILEAGE ON YOUR CAR IS, YOU GET ZERO MILES PER GALLON SITTING IN TRAFFIC. REPORTER: THOSE WHO LIVE WITHIN FIVE MILES OF A COMMUTER RAIL STATION DO NOT QUALIFY FOR THE TAX CREDIT. HERE’S HOW IT WORKS. THE VALUE OF THE CREDIT IS CALCULATED BASED ON 10% OF THE GAS TAX, ADDED TO THE TOTAL NUMBER OF COMMUTING MILES. THE SUM WOULD BE SUBTRACTED FROM THE DRIVERS STATE INCOME TAX. >> A LOT OF PEOPLE ARE STAYING OUTSIDE THE CITY CENTERS. SO HAVING A TAX CREDIT TO PU BACK INTO YOUR CAR, WHETHER THAT’S GAS, WHETHER THAT’S PUTTING IT BACK IN FIXING YOUR CAR FOR WEAR AND TEAR IS GREAT. REPORTER: DRIVERS SEEKING TO QUALIFY FOR THE CREDIT HAVE TO PROVIDE PROOF OF THEIR PERMANENT ADDRESS AND THEIR VEHICLE REGISTRATION ADDRESS HAS TO MATCH. THEY MUST HAVE CERTIFICATION FROM THEIR EMPLOYER OF THEIR WORK ADDRESS AND VERIFY THE EMPLOYEE WORKS THREE OR MORE DAYS A WEEK. THE MARYLAND DEPARTMENT OF TRANSPORTATION WOULD ADMINISTER THE CREDIT. >> I THINK IT IS A GOOD IDEA. I THINK A LOT OF PEOPLE COMMUTE TO WORK, ESPECIALLY IF YOU WORK IN THE CITY AND LIVE IN THE SUBURBS. REPORTER: WHILE THERE WAS NO PUBLIC OPPOSITION DURING A RECENT BILL HEARING, STATE FISCAL HAWKS ARE TAKING NOTICE THAT THE TAX CREDIT WOULD CO
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Bill that would offer commuters tax credit is under consideration in Annapolis
A bill is under consideration at the State House which gives commuters a tax credit, but there are some conditions to determine who is eligible for that break. No matter how fuel efficient your vehicle is, the drive to work can be expensive. This first-of-its-kind legislation in the country gives commuters a financial break.Those driving at least 40 miles round-trip to work would get a tax credit if the new bill in Annapolis passes."I think that would be a good idea for commuters," commuter Jim Dougherty said. "I would probably use it for, you know, put it back into the economy. Maybe for some entertainment."Sen. Arthur Ellis, a Democrat from Charles County, is sponsoring the bill. "No matter how great the gas mileage on your car is, you get zero miles per gallon sitting in traffic," Ellis said. Those who live within 5 miles of a commuter rail station do not qualify for the tax credit.Here's how it works: The value of the credit is calculated based on 10% of the gas tax added to the total number of commuting miles. The sum would be subtracted from the driver's state income tax."A lot of people are staying outside the city centers. So, having a tax credit to put back into your car, whether that's gas, whether that's putting it back in, fixing your car for wear and tear is great," commuter Jamel Lattimore said.Drivers seeking to qualify for the credit have to provide proof of their permanent address and their vehicle registration address has to match. They must have certification from their employer of their work address and verify they work three or more days a week. The Maryland Department of Transportation would administer the credit. "I think it is a good idea. I think a lot of people commute to work, especially if you work in the city and live in the suburbs," commuter Jill Santos said. While there was no public opposition during a recent bill hearing, state fiscal hawks are taking notice that the tax credit would cost the state several hundred million dollars each year.

A bill is under consideration at the State House which gives commuters a tax credit, but there are some conditions to determine who is eligible for that break.

No matter how fuel efficient your vehicle is, the drive to work can be expensive. This first-of-its-kind legislation in the country gives commuters a financial break.

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Those driving at least 40 miles round-trip to work would get a tax credit if the new bill in Annapolis passes.

"I think that would be a good idea for commuters," commuter Jim Dougherty said. "I would probably use it for, you know, put it back into the economy. Maybe for some entertainment."

Sen. Arthur Ellis, a Democrat from Charles County, is sponsoring the bill.

"No matter how great the gas mileage on your car is, you get zero miles per gallon sitting in traffic," Ellis said.

Those who live within 5 miles of a commuter rail station do not qualify for the tax credit.

Here's how it works: The value of the credit is calculated based on 10% of the gas tax added to the total number of commuting miles. The sum would be subtracted from the driver's state income tax.

"A lot of people are staying outside the city centers. So, having a tax credit to put back into your car, whether that's gas, whether that's putting it back in, fixing your car for wear and tear is great," commuter Jamel Lattimore said.

Drivers seeking to qualify for the credit have to provide proof of their permanent address and their vehicle registration address has to match. They must have certification from their employer of their work address and verify they work three or more days a week.

The Maryland Department of Transportation would administer the credit.

"I think it is a good idea. I think a lot of people commute to work, especially if you work in the city and live in the suburbs," commuter Jill Santos said.

While there was no public opposition during a recent bill hearing, state fiscal hawks are taking notice that the tax credit would cost the state several hundred million dollars each year.