The Nonprofit Parking Tax

What is the Nonprofit Parking Tax?

As part of the big tax reform law passed by Congress and signed into law by President Trump in late 2017 (the Tax Cuts and Jobs Act), provisions were added that relate to certain fringe benefits provided by tax-exempt employers to their employees. Those provisions became effective January 1, 2018.

One provision, new Section 512(a)(7) of the Internal Revenue Code, says that tax-exempt employers (churches, charities, etc.) must treat as unrelated business taxable income the cost of providing parking to their employees, subject to IRS guidance.

What that means in plain language is that Congress created a federal income tax on the cost of employee parking provided by churches, charities, and other nonprofits.  

To learn more about the Nonprofit Parking Tax, please see the additional educational resources available below:

If you would like professional assistance from BMWL in determining if the Nonprofit Parking Tax applies to your organization and if so, in preparing any necessary tax filings; please complete and submit the form below, and a member of the BMWL Nonprofit Parking Tax Team will contact you:

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