I write on behalf of the nearly 1,600 members of the Nonprofit Coordinating Committee of New York (NPCC), a membership organization for 501(c)(3) nonprofits in and around New York City. NPCC represents nonprofits throughout New York City, Long Island, and Westchester. Our diverse membership includes small and large nonprofits working on issues important to all of our communities, such as human services, education, health, the environment, and more.
NPCC members have expressed grave concerns about subsection 512(a)(7) of the Internal Revenue Code. NPCC and our members urge the immediate repeal of Internal Revenue Code Section 512(a)(7), the new income tax on expenses incurred by nonprofits for providing employee transportation benefits, such as parking and transit passes. This new tax is forcing hundreds of thousands of charitable nonprofits, houses of worship, foundations, and other nonprofits to conduct extensive and costly assessments of their expenses related to parking, subway cards, and bus passes to determine whether and how much in tax payments they must submit to the IRS. Notably, these payments are coming due in a matter of weeks unless Congress acts immediately to repeal the tax. Please see the comments of the National Council of Nonprofits responding to recent rulemaking that explain the many challenges that the tax is imposing on community-based organizations and demonstrate the urgent need for congressional action.