Establishes the commuter transportation benefit chapter. Employers with five hundred (500) or more employees required to establish a pre-tax commuter transportation fringe benefit program.

Rhode Island Commuter Transportation Benefits Act

This bill would require large employers in Rhode Island to offer their workers a special pre-tax benefit program to help cover the cost of commuting. Specifically, any company with 500 or more employees would need to set up a program that allows workers to set aside a portion of their paycheck — before taxes are calculated — to pay for transportation expenses like bus passes, train tickets, or other qualifying commuting costs. Because the money is taken out before taxes, employees effectively pay less in taxes overall, putting more money back in their pockets.

The people most directly affected would be employees at large Rhode Island companies who currently commute to work using public transit or other covered transportation options. By participating in these pre-tax benefit programs, workers could reduce their taxable income and save money on their commuting expenses. Large employers (those with 500 or more workers) would be responsible for setting up and administering these programs, which could involve some additional administrative work on their end.

Currently, this bill has been referred to the House Labor Committee and was recommended to be held for further study, meaning it has not yet advanced through the legislative process. It is scheduled for further hearing and consideration in early 2026. Similar programs already exist in several other states and cities across the country, and federal tax law already allows for these types of pre-tax commuter benefits — this bill would simply make offering them a requirement for larger Rhode Island employers rather than an optional choice.