Complete Repeal of Taxes on Transportation Benefits

In an end-of-year push, nonprofits nationwide scored a huge victory late Friday night (12/20/2019): the comprehensive budget bill passed by Congress, and signed into law by the President, includes a complete repeal of the federal unrelated business income tax (UBIT) on nonprofits that provide transportation benefits to their employees.  

For nearly two years, nonprofits nationwide, led by the National Council of Nonprofits and others, have been advocating for repeal of this provision in the 2017 federal tax law which imposed a 21% corporate income tax on nonprofits’ expenses associated with commuter benefits such as Metrocards and employee parking.

In more good news, the National Council of Nonprofits notes that the repeal will be applied retroactively, and that nonprofits that paid the benefits-related unrelated business income tax will be entitled to a refund of the taxes paid (but not the administrative and accounting expenses incurred in calculating it).

The NH Center of Nonprofits has actively advocated with our congressional delegation for this repeal, resulting in legislation, the Preserve Charities and Houses of Worship Act, from Senator Jeanne Shaheen. The Center also convened a Roundtable Discussion on the issue with Congressman Chris Pappas in partnership with Easterseals NH in August of 2019. 

Post date: December 24, 2019
Topics: National News | National Legislative Updates

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