Year-end Legislation Repeals Transportation Benefits Tax and Streamlines Private Foundation Excise Tax
As December came to a close, an important piece of legislation was passed by Congress and signed by the President that has significant implications on our sector.
On December 20, 2019, H.R. 1865, the “Further Consolidated Appropriations Act, 2020” became law. This legislation includes the repeal of Internal Revenue Code Section (IRC) 512(a)(7), the unrelated business income tax (UBIT) on qualified transportation benefits, and simplification of the private foundations excise tax.
IRC 512(a)(7) was part of the Tax Cuts and Jobs Act of 2017 and imposed a 21% UBIT on nonprofits providing