Updated: The Effect of the Tax Cuts and Jobs Act on Tax-Exempt Associations

On December 15, 2017, the House of Representatives published the Conference Report resolving the differences between the versions of the “Tax Cuts and Jobs Act” passed by the House (the “House Bill”) and by the Senate (the “Senate Bill”). The Conference Report represents the final version of the “Tax Cuts and Jobs Act” (the “Tax Act”) passed by both the House and Senate.  

The Tax Act includes several provisions that may significantly impact tax‐exempt associations, though the final version is much less impactful than the earlier versions of the legislation. However, as the Tax Act includes several provisions relating to unrelated business income (“UBI”) and executive compensation, the Tax Act is, none‐the‐less, likely to increase the amount of association income subject to tax.  

Here is a brief description of the provisions of the Tax Act which are likely to have the most significant impact on tax‐exempt associations.  

Updated: The Effect of the Tax Cuts and Jobs Act on Tax-Exempt Associations