In a new type of
employment benefit for the environmentally conscious, some employers are giving
their employees cash incentives to buy hybrid cars. For example, a Bank of
America Corp. pilot program recently began offering employees a $3,000
reimbursement on a new hybrid vehicle’s purchase. The pilot covers more than
21,000 employees living near
Angeles
incentives are taxable compensation that employers must report in employees’
year-end Form W-2 earnings statements. The IRS also says that these cash
incentives are subject to income tax withholding and employment tax, noting
that the tax code already includes incentives for the purchase of hybrid cars.
For more information, go
to www.irs.gov/newsroom/article/0,,id=160030,00.html.
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