November 16, 2017

House-passed tax bill keeps CU exemption in place

The House, by a vote of 227-205 Thursday, passed the Republican tax bill (H.R. 1) with the credit union tax exemption fully intact. The bill now moves to the Senate.

"NAFCU and its members thank the members of the House who had a hand in this legislation for recognizing the benefit credit unions' tax exemption provides, not only to their members, but to all consumers and the greater economy," said NAFCU President and CEO Dan Berger. "We will continue to be engaged as the Senate continues work on its own bill and both chambers work to reconcile the legislative differences."

NAFCU staff remain on Capitol Hill, engaging with lawmakers in both the House and Senate as this process moves forward. The association is ensuring all members of Congress understand the economic benefits credit unions provide their communities and nation as a whole. An independent tax study released by NAFCU earlier this year shows that the cumulative benefit credit unions provide the greater economy totals $16 billion a year.

The Senate is working through its own version of the tax bill, the Tax Cuts and Jobs Act, which is expected to be voted on by the full chamber after the Thanksgiving break.

NAFCU is advocating five tenets for ensuring a positive environment for credit unions, and one of these is a fair playing field. NAFCU will continue to engage lawmakers as this bill moves through Congress to determine 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.