S.632: LIFT for Charities Act

Overview

The LIFT for Charities Act (S.632) would repeal a provision from the Tax Cuts and Jobs Act that requires non-profit organizations to pay a 21 percent Unrelated Business Income Tax (UBIT) on “fringe benefits” for which a tax deduction is not allowed. These taxable “fringe benefits” include amenities such as transportation, parking, cafeterias, and athletic facilities. The Joint Committee on Taxation estimates that nonprofits will pay more than $200 million in 2019 alone due to the UBIT.

H.R.1545 is the House companion bill.

UBIT repeal was incorporated into the National Law Enforcement Museum Commemorative Coin Act, which became law in December of 2019.

Source

Talking Points

  • UBIT imposes an income tax on the expenses of nonprofits, diverting resources away from their missions.
  • The National Assembly supports a full repeal of the UBIT.
  • For more on UBIT, check out resources from our partners at the National Council of Nonprofits.

Our Stance

Support

Priority

High

Bill Number

S.632

Date Introduced

February 28, 2019

Committee

Senate Finance Committee

Bill Status

Introduced or Prefiled