On Wednesday June 19th, ANCOR member Harc, Inc. will testify to the U.S. House of Representatives Ways and Means Committee about the challenges non-profits face because of changes to the unrelated business income tax (UBIT) formula made through the 2017 tax reform package, the Tax Cuts and Jobs Act (TCJA). The hearing, titled “Ending the TCJA Tax on Houses of Worship, Charities, and Nonprofits”, will be held Wednesday at 2:30pm ET at 1100 Longworth House Office Building, and will be available by livestream.
ANCOR has long advocated against the new 21 percent tax on “fringe” employee benefits such as parking and transportation that is included in the UBIT changes. This tax, which draws away resources from our members’ mission and recruitment / retention efforts, is particularly consequential in light of the serious workforce crisis affecting disability supports. The UBIT provision was one of the reasons we opposed TCJA in 2017. In 2019, when the UBIT tax first took effect for 2018 income, we submitted comments sharing our concerns about the bill to the IRS. ANCOR has also joined efforts by the UBIT Coalition to advocate for repeal of the provision.
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