For years, many nonprofit employers, like Jewish agencies, have provided transit benefits to their employees as a tax-free or tax-advantaged fringe benefit. The recent tax reform bill, The Tax Cuts and Jobs Act of 2017, provides that, effective January 1, 2018, taxable employers may no longer deduct the value of those transportation fringe benefits as a business expense and nonprofit employers that provide transportation fringe benefits (i.e. paid-employee parking and transit passes) to their employees must report and pay tax on the value provided as “unrelated business income.” Even employers who pay for transportation fringe benefits via pre-tax dollars through Compensation Reduction Agreements (CRAs) will have to pay this tax based on the amount included in the employee CRAs. The federal tax will be imposed at the 21 percent corporate tax rate and state income taxes could also apply. This new tax could represent a substantial unbudgeted financial burden on agencies, especially in urban areas, where the value of transportation fringe benefits is significant. Please contact your members of Congress and urge them to pass this legislation repealing the unfair tax on charities that provide qualified transportation fringe benefits to their employees. For further information, please contact Mindy Brodsky, NJHSA Washington Representative, or Steven Woolf, JFNA Senior Tax Policy Counsel.