#Transportation News

Ending unfair non-profit taxation

June 14, 2018

Edenred Commuter Benefit Solutions has been a long-time champion of commuter options. HR 1, more commonly referred to as tax reform made several changes to the transportation fringe benefit.
The legislation maintained the parking and transit tax benefits for individuals, however, the legislation made it more expensive for non-profits and universities to offer transportation fringe benefits.

Under the new legislation, non-profits and employers who offer transportation benefits (both parking & transit), would be required to pay a 21% unrelated business income tax on the amounts subsidized or held pre-tax.
This amount also includes any transit or parking that is given away.
The only way a tax-exempt organization can avoid this tax is be requiring employee’s to pay for parking on their own, creating burdens on those employees and employers by increasing the need for additional parking.
Edenred Commuter Benefit Solutions applauds Congressman Conaway (R-TX) for working to resolve this issue by repealing the section of law that creates this penalty. We look forward to working with Rep. Conaway to resolve this as quickly as possible.
Tell your Member of Congress to end this unfair penalty by going to the action center created by the Coalition for Smarter Transportation, an organization we are proud to be a part of:
Click this link to be sent to a form that will connect you to your member of Congress
If you want to learn more about commuter benefits, download the 101 Guide below:

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