Congress Votes to Repeal Burdensome TCJA Provision

Nonprofit leaders are hopeful that a transportation benefits tax included in the 2017 Tax Cuts and Jobs Act (TCJA) will soon be repealed. A recent article published by The NonProfit Times offers helpful details on the subject.

The TCJA transportation benefits tax imposed an unrelated business income tax (UBIT) on the expenses that nonprofits accrue for providing employees with transportation benefits. Nonprofit leaders were very unhappy with the new tax provision, arguing that it would divert money away from the important missions of nonprofits.

At the end of 2019, the House and Senate agreed upon a bipartisan revision that would retroactively repeal the transportation benefits tax. Based on language from the Lessening Impediments from Taxes (LIFT) for Charities Act, the provision was inserted into H.R. 1865, the National Law Enforcement Museum Commemorative Coin Act [Further Consolidated Appropriations Act, 2020].

For more details, read the article in full at The NonProfit Times.