Newsroom

June 07, 2013

Senate Finance paper mum on CUs' tax status

June 10, 2013 – A tax-reform options paper released late Thursday by the Senate Finance Committee includes no specific reference to any change in credit unions' federal tax exemption, but NAFCU is reviewing the document for any impact on credit unions.

This is the eighth tax-reform options paper released by the committee. Titled "Types of Income and Business Entities," the paper discusses potential reforms to various business tax structures, including a range of options regarding S corporations.

"We are staying in close touch with the Senate Finance Committee and the House Ways and Means Committee during tax-reform discussions," said NAFCU Vice President of Legislative Affairs Brad Thaler. He said NAFCU lobbyists continue to hear from key members of Congress that there is no appetite for changing the tax status of credit unions in this process. "Still, we will remain vigilant," Thaler noted.

Preservation of credit unions' federal tax exemption has been and remains NAFCU's top priority.

Last fall, NAFCU released a landmark study on the value of the credit union tax exemption to the U.S. economy. Thaler said the study, which shows the credit union exemption results in $10 billion in economic benefits annually, has been well received on the Hill amid the ongoing debate on tax reform.