Good News for Nonprofits!
Repeal of the Parking & Transit Benefits Tax
Nonprofit organizations in Minnesota can again offer employee transportation benefits without a tax liability. Last month government funding legislation was passed for the 2020 fiscal year that included repealing Section 512(a)(7), commonly referred to as the “parking tax” for tax-exempt organizations. 
 
Section 512(a)(7 ) went into effect in 2018 as part of the tax reform known as the “Tax Cuts and Jobs Act.” The cost of providing transportation benefits to employees of tax-exempt organizations were subject to a 21% Federal unrelated business income tax (“UBIT”). Benefits taxed included employer subsidized Metropass cards, bicycle commuting reimbursement benefits and employer-provided parking benefits. The tax applied to public charities, private foundations, hospitals, independent schools, colleges and universities. 

Organizations that have already paid the tax for 2018 and 2019 may seek refunds. See your tax adviser for details.

Staff at ESG Architecture & Design
New Metropass Employers

Downtown employers of all sizes are enrolling in the Metropass transit pass program to maximize employee attraction and retention. Metropass can be offered on a pre-tax basis and paid for by employees or subsidized by employers. Congratulations to ESG Archtecture & Design, Perforce Software, and MSR Design whose employees are now commuting with Metropass.

Let Move Minneapolis demonstrate how Metropass can make your employees happy and improve your bottom line.
Move Minneapolis, a subsidiary of the Minneapolis Regional Chamber, promotes sustainable transportation – transit, walking, biking, shared mobility and telework – through outreach to downtown Minneapolis employers, workers, and residents.

Move Minneapolis is made possible by a federal Congestion Mitigation and Air Quality (CMAQ) grant in partnership with the United States Department of Transportation, the Metropolitan Council, the City of Minneapolis, MnDOT, Hennepin County, and our generous sponsors.