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Senior House Ways and Committee member Devin Nunes, R-Calif., today introduced his tax reform bill, which, as anticipated by NAFCU, leaves the credit union tax exemption intact.

The bill, H.R. 4377, the "American Business Competitiveness Act," would adopt reforms to "encourage businesses to invest and expand, make it much easier for Americans to open their own business, and kickstart growth throughout the entire U.S. economy," Nunes said.

Nunes' legislation not only leaves credit unions' tax exemption alone, but it specifically exempts credit unions to avoid any confusion. NAFCU is reviewing the tax reform bill for any other matters related to the credit union industry.

"NAFCU thanks Rep. Nunes for his support of credit unions in his tax reform legislation," said NAFCU Vice President of Legislative Affairs Brad Thaler.

"We're staying in close contact with members in both the House and Senate – especially those on the House Ways and Means Committee and the Senate Finance Committee – to ensure preservation of credit unions' tax exemption," Thaler continued. "If a threat arises, NAFCU members can rest assured that we will quickly respond."

NAFCU has been the leader in protecting credit unions' tax exemption, including releasing an updated study in 2014 on the value of the credit union tax exemption to the U.S. economy.

Nunes' bill eliminates the income tax on businesses and replaces it with a cash-flow tax. It also includes four main provisions:

• 100 percent, same-year expensing for business investments;
• a maximum business tax rate of 25 percent;
• the closing of loopholes and special deals on businesses taxes; and
• the moving to a territorial international system.

Preserving credit unions' tax exemption remains NAFCU's top legislative priority. Learn more about NAFCU's 2016 top priorities.