Originally, basketballs were made of brownish leather, and that led to brownish balls. In the 1950's, the legend says that then Butler Coach led a movement to turning the ball orange so it would be easier for the players to see.
It is giving them "incentive". Which basically means giving them something (in this case, tax credits) in order to motivate them to do something (in this case, to use public transportation on a regular basis).
It indicates that the author thinks highly of this person or that this person is highly powerful in the story.
True, most think they can do drugs then quit just as easily.