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Lame-Duck House Bill Would Repeal Church ‘Parking Tax’ (1)

Nov. 29, 2018, 6:35 PMUpdated: Nov. 29, 2018, 9:27 PM

The House’s lame-duck tax bill now offers a boon to churches and other religious organizations—the repeal of a 2017 tax overhaul provision that has drawn their ire by exposing them to unprecedented tax liabilities.

One of the most pressing issues the nonprofit sector has flagged in the 2017 tax law is tax code Section 512(a)(7), which requires certain nonprofits to a pay a new 21 percent unrelated business income tax on various transportation and fringe benefits, such as parking spaces, transit passes, and meals.

The provision, which could force thousands of churches, hospitals, and other generally tax-exempt organizations to ...