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H 4451

An Act expanding access to commuter transit benefits offered by employers

194th Legislature (2025-2026) Introduced by Jamie Eldridge and 3 co-sponsors

Massachusetts large employers must offer pre-tax commuter transit benefits to non-CBA employees, with enforcement and outreach to boost take-home pay and reduce taxable income.

Bill reported favorably by committee and referred to the committee on House Ways and Means
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Bill Summary · H 4451

Comprehensive Summary: H.4451 – An Act expanding access to commuter transit benefits offered by employers

Overview

H.4451, introduced September 4, 2025, seeks to expand access to pre-tax commuter transit benefits for employees in Massachusetts. The bill requires large employers to offer a pre-tax transportation fringe benefit to non-bargaining unit employees and establishes enforcement mechanisms, state-led outreach, and regulatory oversight through the Massachusetts Department of Revenue (DOR). The act would align state practice with federal tax treatment of qualified transportation fringe benefits under Internal Revenue Code Section 132(f).

Key provisions

  • Definitions (Section 204(a))

    • “Employee” mirrors the definition in the state’s Chapter 151A.
    • “Employer” mirrors the definition in Chapter 151A, excluding the United States government; individual employers are identified by Federal Employer Identification Number (FEIN).
    • “Pre-tax transportation fringe benefit” refers to a pre-tax election for commuter highway vehicle and transit benefits, up to the federal limits under 26 U.S.C. §132(f)(1)(A), (B), and (D).

  • Employer obligation (Section 204(b))

    • Employers in Massachusetts with at least 500 employees must offer a pre-tax transportation fringe benefit to all employees not covered by a collective bargaining agreement (CBA).
    • Employers and employees covered by a CBA may negotiate to include the benefit in their agreement.

  • Penalties and enforcement (Section 204(c))

    • First violation: $100 fine.
    • Each additional month of non-compliance: $250 per month.
    • No employer shall be fined more than once in a single month.
    • DOR may waive or reduce fines for good faith efforts to comply or demonstrated hardship.
    • Enforcement of fines becomes effective one year after passage (see timeline below).

  • Public outreach and model materials (Section 204(d))

    • DOR, in coordination with MBTA and other transportation stakeholders, must run a multilingual public awareness campaign encouraging employer-participant engagement.
    • DOR will prepare and disseminate model multilingual materials for employers to notify employees about available benefits.

  • Regulatory framework (Section 204(e))

    • DOR commissioner must adopt regulations to implement and ensure compliance, including a confidential reporting mechanism for non-compliant employers.

  • Effective timeline (Section 204, Section 2)

    • The requirement to offer the pre-tax benefit to employees is immediate upon enactment.
    • The penalties/enforcement provisions (the fines) take effect one year after passage.

Affected parties

  • Primary impact on employers with 500+ employees in Massachusetts (excluding US government offices).
  • Employees not covered by CBAs at those employers.
  • Government and agencies involved in enforcement and outreach (DOR, MBTA, regional planning bodies, chambers of commerce, etc.).

Legislative status and process

  • Reported favorably by the Committee on Labor and Workforce Development and referred to the Committee on House Ways and Means on September 4, 2025.
  • New draft referenced: House Bill 2153 (H2153) accompanying H.4451.

Potential impact and considerations

  • Increased take-home pay for many workers via pre-tax transit benefits, potentially reducing taxable income and encouraging transit usage.
  • Administrative responsibilities and potential costs for large employers to implement or adjust pre-tax benefit programs.
  • Enhanced state outreach to boost awareness across multilingual communities.
  • Compliance and enforcement will hinge on DOR rulemaking and employer reporting.

This summary aims to provide a clear, objective overview of H.4451’s purpose, provisions, and implications.

Compiled from official sources — confirm details with the bill’s official record.

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