REPEALED: Nonprofit Parking and Transit Benefits Tax

Last Friday, President Trump signed into law legislation that includes repeal of the unrelated business income tax (UBIT) on nonprofit parking and transit benefits.

Thank you to the UBIT Coalition and the countless advocates who wrote letters and visited congressional offices to support this repeal, as well as the legislators on both sides of the aisle who understood the compliance challenges and administrative burdens that the employee fringe benefits tax created for nonprofit groups.

“The ASAE community not only mobilized quickly after this misguided tax was passed as part of the 2017 tax law, but sustained a years-long advocacy and grassroots campaign to educate lawmakers about how this tax unfairly expanded the UBIT statute to tax basic parking and transit benefits that nonprofits provide to their employees,” said Susan Robertson, CAE, ASAE’s interim president and CEO. “ASAE thanks its members and the UBIT Coalition for persistently and convincingly making the case that this tax should be repealed to allow associations and other nonprofit organizations to focus their limited resources on mission-oriented programs and services that benefit society.”

Congratulations to the entire tax-exempt community.

Happy holidays!

ASAE Public Policy Team

If you have questions about this critical legislation and what it means for the tax-exempt community, please contact ASAE’s Public Policy team at 202-626-2703 or publicpolicy@asaecenter.org.