Sec.12-217s-8. Department determination of eligible credit

(a) Each corporation’s eligible credit shall be determined by the department on or before November 1st of each year, by the following procedure.

(1) The department shall compare the direct costs on the application form and the reduction measures in the approved plan or annual update (for each work location, if more than one) to determine if the direct costs on the application support the traffic reduction measures, and are reasonable for the level of effort described in the plan or annual update. If the department determines that the costs support the traffic reduction measures and are reasonable for the level of effort described in the plan, the department will approve the direct costs on the application.

(b) The department shall then calculate the qualified corporation’s maximum eligible credit for each year on the application as the lesser of the following two amounts:

(1) The number of participating employees multiplied by $250; or

(2) Fifty percent of the total approved direct costs.

(c) The department shall total the maximum eligible credits for all qualified corporations submitting applications for each credit year. If the total maximum eligible credits for all qualified corporations for a single credit year are less than or equal to the statutory limit, the eligible credit for any corporation shall be the amount of maximum eligible credit set for that corporation by the department. If the total maximum eligible credits for all qualified corporations for a single credit year are more than the statutory limit, the department will determine the amount of eligible credit to be a prorated percentage of the maximum eligible credit by the following formula:

where:

	EC = Qualified corporation’s eligible credit
	MEC = Qualified corporation’s maximum eligible credit
	SL = Statutory limit
	TMEC = Total of maximum eligible credits for all qualified corporations

Example: A qualified corporation’s approved direct cost to implement its traffic reduction program is determined to be $20,000. That corporation has 45 participating employees. That corporation’s "maximum eligible credit" (MEC) is the lesser of 50% of the corporation’s approved direct cost ($20,000 x 50% = $10,000) or $250 per participating employee ($250 x 45 = $11,250). Therefore, that corporation’s maximum eligible credit is $10,000.

Continuing this example, the total maximum eligible credits for all qualified corporations (TMEC) is $2,000,000. The statutory limit (SL) is $1,500,000. Based upon the above, the corporation’s Eligible Credit (EC) would be calculated to be $7500 which equals ($10,000 [MEC] x ($1,500,000 [SL] / $2,000,000) [TMEC]).

(Adopted effective April 1, 1999)