As a part of a year end deal on tax issues, Congress repealed a provision of the 2018 tax reform bill which requires tax-exempt organizations to pay taxes (21%) on parking and transit benefits that they provide to employees. The provision, known at UBIT (Unintended Business Taxable Income) created a transit and parking tax for thousands of universities, hospitals, churches and other non-profits that in some cases cost them millions of dollars. The repeal of the UBIT provision is something that the Coalition for Smarter Transportation has been working on over the past two years.
Jason Pavluchuk, Policy Director had this to say
We are grateful that this provision has been repealed. We believed the provision to be misguided and unfairly taxed non-profits. The effort to repeal this provision brought together organizations from accross the spectrum and we are very grateful for the leadership shown by so many Congressional champions.
The legislation makes the provision retroactive which means that non-profits which have paid UBIT in 2018 or 2019 will be due a refund.