Congress Considering Possible Parking Tax Fix

Earlier this year, ECFA led the charge on the church and nonprofit parking tax issue by circulating a position statement, which was signed by over 2,700 churches and nonprofits, with representation from all 50 states, advocating for the repeal of the newly added section 512(a)(7) of the Internal Revenue Code. This is the code section that imposes a 21% tax on certain employee benefits of churches and nonprofits, including the parking tax.

Last week, the U.S. House of Representatives introduced a tax package under the name of Retirement, Savings, and Other Tax Relief Act of 2018 and the Taxpayer First Act of 2018. The day after this package was released, House Ways and Means Committee Chairman Kevin Brady introduced a manager’s amendment including a complete repeal of 512(a)(7).

Further discussions may lie ahead regarding the future of this bill for both the House of Representatives and Senate. However, ECFA is pleased to see that Congress has included this repeal in the latest draft of this tax package. Organizations concerned about this tax are encouraged to voice their feedback to their members of Congress. ECFA is continuing to monitor developments and will provide further information as it becomes available.


This text is provided with the understanding that ECFA is not rendering legal, accounting, or other professional advice or service. Professional advice on specific issues should be sought from an accountant, lawyer, or other professional.

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