The "parking tax," as the provision was called, was bitterly opposed by a wide swath of nonprofit and advocacy organizations. The provision changed how the unrelated-business income tax was applied to nonprofits, resulting in a new 21 percent levy on parking and transportation benefits offered to nonprofit employees.

The provision reversing the levy is tucked in a larger spending package that must pass by the end of the week to keep government agencies operating. The House passed the bill today, and Senate action is expected to follow quickly.