Background:

The Tax Cuts and Jobs Act signed into law last December, more commonly referred to as tax reform, made several changes to the transportation fringe benefit (IRC Sec. 132(f)). The legislation maintained the parking and transit tax benefits for individuals.  However, it also made the transportation fringe benefit more expensive for non-profits and universities that offer it.  Under the new law, non-profits who offer transportation benefits (both parking & transit), are required to pay a 21% Unrelated Business Income Tax on the amounts deducted by employees on a pre-tax basis or provided by employers as a subsidy. The only way a tax-exempt organization can avoid this tax is requiring employees to pay for parking or transit on their own.

CoaST Presentation on UBTI and Impact of Tax Reform on Tax-Exempt Transportation Fringe Benefits

CoaST 1-pager on Changes Made To Transportation Fringe Benefits

House Legislation:

HR 513 (Conaway R-TX)

HR 1545 (Walker R-NC)

HR 1223 (Clyburn (D-SC)

House Dear Colleague

Status: Passed Ways & Means Committee as a part of HR 3300 Economic Mobility Act (Tax Extenders) (9/4/19)

Senate:

S 1282 (Cruz)

S 632 (Lankford)

Status: Pending in Finance Committee (9/4/19)

 

Action Center

House:

Status: Approved by Full Appropriations Committee

House Version:

Highlights:

Includes $1 billion for Build/TIGER

Adds $1.75 billion additional highway funds distributed through the STBG program

Adds $750 million above authorized level for additional transit grants

CoaST Position: Support

  • CoaST supports additional funding appropriated by the Committee but is concerned that the funding allocated for transit grants compared to highway grants is not proportionate to current spending levels. CoaST supports the Committee’s recommendation to include an additional $1.75 billion to the STBG program which provides State and local governments with funding as well as maximum flexibility.

Senate:

Status: Passed Senate Subcommitete

Senate Committee Report

Bill Text (not yet available)

Summary of Senate Bill

CoaST Position: Support

Includes $1 billion for Build/TIGER

Adds $2.7 billion discretionary appropriations for highway programs, of which $1.25 billion is for the Surface Transportation Block Grant funds and for the elimination of hazards at railway-highway grade crossings, and $1.25 billion is for bridge repairs in small states with high rates of bridges not in good condition.

Adds $560 million above authorized level for additional transit grants

Bill Number: HR 1507

Sponsors: Blumenauer (D-OR) & Buchanon (R-FL)

Companion: None

Co-Sponsors

Text

Summary: Would reinstate the bicycle benefit for individuals and amend it in the following ways:

  • Able to combine with transit/parking
  • Users would be able to take part of their parking benefit and use toward bike expenses
  • Expands definition to include bikeshare

CoaST Position: Support

Additional Links:

Rep. Blumenauer Press Release with CoaST Quote

ACTION CENTER

Unrelated Business Taxable Income - Transportation Fringe Benefits

Background:

The Tax Cuts and Jobs Act signed into law last December, more commonly referred to as tax reform, made several changes to the transportation fringe benefit (IRC Sec. 132(f)). The legislation maintained the parking and transit tax benefits for individuals.  However, it also made the transportation fringe benefit more expensive for non-profits and universities that offer it.  Under the new law, non-profits who offer transportation benefits (both parking & transit), are required to pay a 21% Unrelated Business Income Tax on the amounts deducted by employees on a pre-tax basis or provided by employers as a subsidy. The only way a tax-exempt organization can avoid this tax is requiring employees to pay for parking or transit on their own.

CoaST Presentation on UBTI and Impact of Tax Reform on Tax-Exempt Transportation Fringe Benefits

CoaST 1-pager on Changes Made To Transportation Fringe Benefits

House Legislation:

HR 513 (Conaway R-TX)

HR 1545 (Walker R-NC)

HR 1223 (Clyburn (D-SC)

House Dear Colleague

Status: Passed Ways & Means Committee as a part of HR 3300 Economic Mobility Act (Tax Extenders) (9/4/19)

Senate:

S 1282 (Cruz)

S 632 (Lankford)

Status: Pending in Finance Committee (9/4/19)

 

Action Center

FY 2020 Transportation Appropriations Legislation

House:

Status: Approved by Full Appropriations Committee

House Version:

Highlights:

Includes $1 billion for Build/TIGER

Adds $1.75 billion additional highway funds distributed through the STBG program

Adds $750 million above authorized level for additional transit grants

CoaST Position: Support

  • CoaST supports additional funding appropriated by the Committee but is concerned that the funding allocated for transit grants compared to highway grants is not proportionate to current spending levels. CoaST supports the Committee’s recommendation to include an additional $1.75 billion to the STBG program which provides State and local governments with funding as well as maximum flexibility.

Senate:

Status: Passed Senate Subcommitete

Senate Committee Report

Bill Text (not yet available)

Summary of Senate Bill

CoaST Position: Support

Includes $1 billion for Build/TIGER

Adds $2.7 billion discretionary appropriations for highway programs, of which $1.25 billion is for the Surface Transportation Block Grant funds and for the elimination of hazards at railway-highway grade crossings, and $1.25 billion is for bridge repairs in small states with high rates of bridges not in good condition.

Adds $560 million above authorized level for additional transit grants

Bicycle Benefit

Bill Number: HR 1507

Sponsors: Blumenauer (D-OR) & Buchanon (R-FL)

Companion: None

Co-Sponsors

Text

Summary: Would reinstate the bicycle benefit for individuals and amend it in the following ways:

  • Able to combine with transit/parking
  • Users would be able to take part of their parking benefit and use toward bike expenses
  • Expands definition to include bikeshare

CoaST Position: Support

Additional Links:

Rep. Blumenauer Press Release with CoaST Quote

ACTION CENTER

Last Update: June 4,2018