Unrelated Business Income Tax (UBIT)

There are many exemptions and adjustments available to UBIT. Any department conducting business-like activities should contact the Tax Department to review the activity for any potential UBIT exposure.

Revenue generated from a trade or business conducted by a university may be subject to the Unrelated Business Income Tax (UBIT). UBIT is a tax that is assessed at corporate income tax rates on the net income from a tax exempt organization’s unrelated trade or business activities. Generally, an activity, which is unrelated to the mission of the exempt organization, carried on with the intent to generate a profit from the sale of goods or services may be subject to UBIT.