After a two-year advocacy and grassroots campaign by ASAE and the UBIT Coalition (of which NAVREF was a part), Congress repealed a section of the 2017 tax law that required associations and other tax-exempt organizations to pay UBIT on employee benefits such as parking and transportation.
As part of a massive, bipartisan year-end spending and tax package agreed to this week, Congress repealed a section of the 2017 tax law that required associations and other tax-exempt organizations to pay a 21 percent unrelated business income tax (UBIT) on employee benefits, such as parking and transportation. Ultimately, Congress recognized that nonprofit employee benefits like parking and transit assistance are not a trade or business conducted for the production of income and therefore should not be regarded as taxable under the UBIT statute.
Promoting Partnerships To Improve Veterans’ Health