House Republicans unveil tax bill; CU exemption untouched
House Republican leaders today introduced their tax reform bill, which, as urged by 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
Preserving credit unions' tax exemption remains NAFCU's top legislative priority.
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