House passes bill w/ CUNA-backed UBIT repeal
The House passed the Retirement, Savings, and Other Tax Relief Act (H.R. 88) Thursday, a bill that makes a CUNA-backed change to Unrelated Business Income Tax (UBIT). H.R. 88 contains a provision that would eliminate the new UBIT on not-for-profit transportation and athletic facilities fringe benefits.
The Tax Cuts and Jobs Act requires tax-exempt organizations currently subject to UBIT (which includes state-chartered credit unions) to pay a 21% tax on certain employee fringe benefits, such as transportation and parking benefits.
The Treasury recently released interim guidance on how to comply with the parking portion of this TCJA provision, following a CUNA call for additional guidance.
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