Sens. James Lankford (R-OK) and Chris Coons (D-DE) last week reintroduced legislation to protect nonprofit organizations, including colleges and universities, from a section in the recently enacted tax law that would tax employee benefits for the first time.
The Lessening Impediments from Taxes (LIFT) for Charities Act would repeal a provision in the Tax Cuts and Jobs Act (TCJA) that requires some tax-exempt organizations to pay federal taxes on benefits like parking, meals, or transportation. ACE opposed this provision during the tax reform debate in 2017 and have urged lawmakers to repeal it.
In December 2018, then-Ways and Means Chairman Kevin Brady (R-TX) included a repeal of the provision in his last package of tax bills as the committee’s chairman, one year after enacting it as part of the TCJA.
Rep. Mark Walker (R-NC) plans to introduce the House companion legislation this week.