UBIT Benefits Discussed At Capitol Hill Hearing

UBIT Benefits Discussed At Capitol Hill Hearing

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Section 512(a)(7) of the tax law would impose an unrelated business income tax (UBIT) on the expenses of nonprofits that provide employees with transportation benefits, such as, transit passes and parking. Nonprofits have been given little guidance in how to calculate the UBIT. Failure to pass any of the multiple bills proposed by members of both parties will mean that nonprofits have a new tax bill due April 15.

“There is not a single representative or senator who thinks this tax on nonprofit transportation benefits should survive, yet it appears that this truly nonpartisan fix is being held hostage by political jockeying,” said David L. Thompson, vice president of public policy for the National Council of Nonprofits. “America’s nonprofits understand that politics often gets in the way of progress, but right now, that’s not a satisfying answer to the people – in the real world – who will be hurt by congressional inaction,” he said. “This nonsensical tax must be repealed before April 15.”

Source Name: 
The NonProfit Times
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