FOR IMMEDIATE RELEASE
House Republican leaders today introduced their tax reform bill, which, as urged by the National Association of Federally-Insured Credit Unions (NAFCU), leaves the credit union tax exemption intact. NAFCU is examining the bill for any additional impacts on credit unions.
"NAFCU thanks House Republican leaders for continuing to recognize the economic value the credit union tax exemption provides to the U.S. economy and American consumers," said NAFCU President and CEO Dan Berger. "We’re staying in close contact with lawmakers in both the House and Senate – especially those on the House Ways and Means Committee and Senate Finance Committee – to ensure the preservation of credit unions' tax exemption and to look out for credit union interests as this process continues to unfold." The House Ways and Means Committee is scheduled to mark up the bill, the Tax Cuts and Jobs Act (H.R. 1), next week. The bill preserves the mortgage-interest deduction with a cap of $500,000 for newly purchased homes (grandfathering in existing homes), maintains state and local property tax deductions up to $10,000 and keeps the 401(k) retirement account intact. NAFCU is reviewing the bill for any potential changes to the unrelated business income tax (UBIT). The bill does propose making tax changes to executive compensation at tax-exempt organizations. It also could provide some tax breaks to Subchapter S banks.
NAFCU is advocating five tenets for ensuring a positive environment for credit unions, and one of these is a fair playing field. NAFCU is continuing to review this tax bill and will be engaging Congress on any potential impact this legislation would have on credit unions – not only with respect to the tax exemption, but other tax code provisions as well. Preserving credit unions’ tax exemption remains NAFCU’s top legislative priority.
The National Association of Federally-Insured Credit Unions is the only national trade association focusing exclusively on federal issues affecting the nation’s federally-insured credit unions. NAFCU membership is direct and provides credit unions with the best in federal advocacy, education and compliance assistance. For more information on NAFCU, go to www.nafcu.org or @NAFCU on Twitter.