Under the 2017 Tax Cuts and Jobs Act, nonprofits are now required to pay a 21% federal tax on the cost of employee transportation benefits, including transit and parking. Last Friday, Speaker Pelosi stated that House Democrats are slowing the review of the tax law, which could mean that nonprofits and houses of worship providing parking (free and otherwise) and covering transit costs for employees will need to make tax payments as soon as next month. To better understand the impact of these taxes, check out this free report created by Independent Sector in partnership with researchers at the Urban Institute and George Washington University.
Bills in the 116th Congress, HR 1223 by House Majority Whip Clyburn (D-SC) and HR 513 by Representative Conaway (R-TX), would repeal the transportation tax for nonprofit organizations. A bipartisan bill, "Lessen Impediments From Taxes for Charities Act" or the "LIFT for Charities Act" (S.632) was introduced in the Senate by Senators Lankford (R-OK) and Coons (D-DE). Read this news release for more information.
Please join the Idaho Nonprofit Center, PANO, the National Council of Nonprofits, and thousands of organizations around the nation in letting your legislators know the impact this tax is causing. You can do any or all of the following:
Excerpts from the Pennsylvania Association of Nonprofit Organizations (PANO)
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