Policy Update: UBIT Legislation Introduced

Nonprofit Connect wants to make you aware of some actions you can take regarding recent UBIT legislation.

What’s Under Consideration
Congress has recently introduced legislation in both the U.S. House (H.R.1545) and Senate (S.632) that would repeal the unrelated business income tax (UBIT) on nonprofit employee transportation benefits, including public transit passes and parking lots/spaces. If passed, the tax could be repealed for nonprofits across the nation before the tax filing deadline of April 15.

This Week
The Senate is in recess until Monday, March 25, so advocacy efforts this week will be seen and followed up on next week. If your organization could potentially be affected by the repeal of the UBIT, please consider contacting your local U.S. Congressional delegation. A large response from the nonprofit community could have a meaningful impact when the Senate returns. We have included all of our area’s federal legislators’ information on our Contact Congress page.

Next Steps
Many legislators are unaware of the impact of this legislation on our sector, and educating them and advocating that they co-sponsor this legislation is the only way that Congressional leadership will take notice and schedule a vote on the proposed bills. We will continue to update you as the situation progresses, particularly if a vote is scheduled and our sector has the opportunity to advocate for passing these bills.

To learn more about Nonprofit Connect's advocacy education efforts, please visit our Advocacy resources page.