The comprehensive tax reform provisions signed into law last December include a new requirement for nonprofits to pay Unrelated Business Income Tax (UBIT) equal to 21% of the value of commuting and parking benefits provided to employees. The League of American Orchestras has partnered with the broader nonprofit sector to ask for clarification of the new rules, delayed implementation, and repeal of this unprecedented tax on nonprofit expenses. While no guidance has been issued by the Internal Revenue Service to clarify which benefits are subject to the tax and how to value certain benefits, the new requirements officially took effect beginning on January 1, 2018.
A tax package now under consideration by Congress includes a provision to repeal the new tax on nonprofits. You can take action today by contacting your elected officials to ask them to:
- Weigh in with the Treasury Department on your behalf, and ask for a delay in implementing the new tax.
- Take legislative action to repeal the new tax on nonprofit parking and transportation employee benefits.
