Public Policy Articles & Analysis

Repealed Tax on Transportation and Parking Benefits was Problematic for Nonprofits

In December 2017, Congress repealed an under-the-radar provision in the Tax Cuts and Jobs Act (which was passed and signed into law in December 2017) that had imposed a new tax on nonprofits that provide transportation and parking benefits to their employees. Many nonprofits that provided these benefits to their employees in 2018 and 2019 paid unrelated business income tax (UBIT) on these expenses and filed Form 990-T with the IRS.

Now that the U.S. Senate has passed tax reform plan (see details below), House and Senate leaders are negotiating a final version of the bill that they hope to send to the President for his signature as soon as this Friday. While both the House and Senate plans include a variety of tax changes that are problematic for nonprofits (plus a few small changes that might benefit nonprofits), there is a big difference between the two plans.

Charitable nonprofits across North Carolina are concerned that the Taxpayer Protection Act (also known as TABOR) would harm nonprofits that provide essential services in every community in our state.  If TABOR (S.607) passed as a constitutional amendment, it would likely lead to new taxes, fewer private contributions, and increased burdens on charitable nonprofits.

Consistent Oversight of Nonprofits is Essential, But Must Not Reduce Grant Awards

On January 31, 2013, a bill (H.B. 58) was introduced in the N.C. House of Representatives to improve accountability of nonprofits with state grants. An identical bill (S.144) was introduced in the N.C. Senate on February 27. H.B.

The N.C. House of Representatives recently passed a bill recommended by the N.C. Center for Nonprofits. This will make it easier for North Carolina small businesses to give to nonprofits. Currently, North Carolina companies that give generously to nonprofits don’t get full credit for their charitable contributions on their state taxes. The bill (H.B. 886) would make the N.C. corporate tax deduction for the same as the federal deduction. Thanks to Rep.

The Governor recently signed into law a bill (H.B. 618) that will streamline monitoring for some nonprofit services providers that contract with the N.C. Department of Health and Human Services (DHHS).

On March 26, the House unanimously approved legislation (H.B.

Based on the Center’s recommendations, the House included a provision in its regulatory reform bill (H.B. 760) to establish a new Government-Nonprofit Contracting Task Force. The 13-member task force would be comprised of state legislators, key executive branch officials, and nonprofit representatives.