NEW LEGISLATION: Relief for Nonprofits from Unrelated Business Taxable Income for Parking and Public Transit Benefits

The Senate has passed the Further Consolidated Appropriations Act, 2020, and it was signed by President Trump late Friday the 20th, providing welcome relief to nonprofits. 

Section 512(a) was amended, repealing the requirement to increase unrelated business taxable income for the cost of parking and transit passes provided by the employer and other qualified transportation fringe benefits. 

The repeal is retroactive to December 31, 2017, for amounts paid or incurred and creates a potential opportunity to amend tax returns that included qualified transportation fringe benefits as unrelated business taxable income. 

Please contact us if you have questions about this amendment and whether your organization is qualified to amend previous tax returns.