FOR IMMEDIATE RELEASE
Washington (November 3, 2017) - The credit union tax exemption remains safe as House Ways and Means Committee Chairman Kevin Brady, R-Texas, today released the chairman's mark of the bill, which will be the text used when the committee begins reviewing the legislation Monday during mark-up.
The economic value the credit union tax exemption provides to the entire economy is estimated at more than $16 billion per year. National Association of Federally-Insured Credit Unions (NAFCU) President and CEO Dan Berger recognized Chairman Brady for understanding the important role credit unions play in the financial marketplace.
"We thank Chairman Brady and all the members of Congress who understand the value the credit union tax exemption provides to the U.S. economy and consumers," said Berger. "We will remain engaged with the Ways and Means Committee as they mark up the bill next week. NAFCU is staying in close contact with members in both the House and Senate to ensure preservation of credit unions’ tax exemption as Congress begins its work on tax reform."
The tax bill, the Tax Cuts and Jobs Act (H.R. 1), released Thursday, 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 proposes some Subchapter S tax relief, although it would fully eliminate the tax deduction for FDIC premiums for institutions with more than $50 billion in assets.
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 examine 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.