How the OBBBA Could Impact Tax-Exempt Organizations
Earlier this week, the Senate Finance Committee released its revisions to the One Big Beautiful Bill Act (OBBBA), the tax bill passed by the House of Representatives last month. While OBBBA’s provisions are heavily focused on for-profit entities and individual income tax, there are some provisions that have the potential to impact tax-exempt organizations. One of the most significant provisions that was in the House version of the OBBBA related to an increased Unrelated Business Income Tax (UBIT) on qualified transportation benefits (parking, transit, etc.) that tax-exempt organizations offer to their employees. This provision was originally in the Tax Cuts and Jobs Act of 2017, though subsequently repealed, and came back to life in the House version of OBBBA. The Senate version of OBBBA has removed this provision as the Bill moves back to the House of Representatives.
While the OBBBA is not yet finalized, Congress and the Administration have a goal of passing the OBBBA by July 4th. As the OBBBA moves through finalization, we will keep you updated on any additional significant changes that could potentially impact all tax-exempt organizations.
This information is accurate as of June 20, 2025. Legislative developments related to the One Big Beautiful Bill Act (OBBBA) are ongoing, and the potential impacts on tax-exempt organizations may change. We will continue to monitor updates and share relevant guidance as it becomes available.
