This Tax Will Divert Funds from Mission-Related Work
On December 22, 2017, President Trump signed into law Public Law No. 115-97, unofficially called the Tax Cuts and Jobs Act, imposing a 21-percent unrelated business income tax (UBIT) on nonprofits that provide their commuting employees with parking and transit benefits. (This does not include non-commuting mileage reimbursement.)
In about two weeks, charitable nonprofits, houses of worship, foundations, and other nonprofits will have to send in estimated payments to the IRS to pay taxes on these expenses. More tax payments will be due a month later. That is, unless Congress will listen to nonprofits and repeal the tax in time.
A national sign-on letter is now circulating to call on Congress to repeal this tax as soon as possible. You can add your organization to this national sign-on letter until Wednesday, April 3, 2019. Learn more about this new tax on nonprofits.
We’re hearing from members that this tax is pulling thousands of dollars away from their missions. The tax is calculated differently depending upon whether the nonprofit organization owns or leases their parking. To learn more about how this tax may affect your organization, please read the interim guidance provided by the IRS back in December of 2018.