Rhode Island 2023 Regular Session

Rhode Island Senate Bill S0173

Introduced
2/16/23  

Caption

The Commuter Transportation Benefits Act

Impact

The implementation of S0173 is expected to significantly impact state labor laws by establishing a formal requirement for larger employers to offer commuter benefits. This new mandate could lead to a broader adoption of such programs across the state, thus potentially changing the commuting landscape. By reducing commuting costs for employees, the bill aims to enhance worker satisfaction and promote a healthier work-life balance, ultimately benefitting both employees and employers. Furthermore, the bill is designed to align with federal tax benefits, ensuring that employers can offer these incentives without additional tax liabilities.

Summary

S0173, known as the Commuter Transportation Benefits Act, mandates that all employers in Rhode Island with 500 or more employees provide a pre-tax transportation fringe benefit program. This program seeks to promote public transit use by allowing employees to deduct commuter transit expenses from their gross income, within the guidelines of the Internal Revenue Code. The goal of this legislation is to alleviate the financial burden of commuting while also encouraging the use of public transportation, which can help reduce traffic congestion and lower carbon footprints.

Contention

Several points of contention surrounding the legislation could arise from the possible challenges faced by some employers who may argue that implementing a pre-tax benefit program could impose financial strains on their operations. The bill does include exemptions for certain employers, such as federal and state government entities and small businesses demonstrating financial hardship, but concerns persist about the feasibility of compliance for many larger employers. These discussions during legislative sessions may center around balancing the benefits of such mandates with the economic realities faced by businesses in different sectors.

Companion Bills

No companion bills found.

Previously Filed As

RI S2130

The "commuter Transportation Benefits Act"

RI S0382

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

RI H5304

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

RI S1193

Expanding access to commuter transit benefits offered by employers

RI S1345

Expanding access to commuter transit benefits offered by employers

RI H1929

Expanding access to commuter transit benefits offered by employers

RI H2153

Expanding access to commuter transit benefits offered by employers

RI HB3959

COVID–19 Commuter Benefits Distribution Act

RI HB409

Supporting Transit Commutes Act This bill provides employers a tax deduction for certain transportation fringe benefits given to employees.Under the bill, employers may deduct costs for providing employees transportation in a commuter highway vehicle (e.g., van pool) between the employee’s home and place of work or a transit pass. The amount of the deduction cannot exceed the aggregate exclusion amount for such fringe benefits ($325 per month per employee in 2025 and adjusted annually). Further, under the bill, the deduction cannot exceed 50% of such amount for transportation fringe benefits provided under a salary reduction agreement.

RI AB2548

Commute benefit policies: Los Angeles County Metropolitan Transportation Authority.

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