The Tax Cuts and Jobs Act of 2017 included a provision that had a significant impact on certain tax-exempt organizations that provided qualified transportation fringe benefits. It required these organizations to pay an “unrelated business income tax” (UBIT) on the cost of the transportation benefits provided after December 31, 2017.
The President signed into law legislation that includes a repeal of UBIT on parking and transit benefits for tax-exempt organizations. The repeal applies retroactively and will allow the organizations to amend previous returns to claim a refund of taxes already paid.
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