April 03, 2014

Tax extenders bill passed by Senate Finance

April 4, 2014 – The Senate Finance Committee on Thursday passed, by voice vote, legislation that addresses a set of provisions known as "tax extenders" that expired last year-end, and it made no changes to any provisions that affect credit unions.

There are more than 50 deductions and credits that expired at the close of 2013. The extenders bill, "Expiring Provisions Improvement Reform and Efficiency (EXPIRE) Act," includes tax breaks for mortgage insurance premiums and a tax break benefiting underwater homeowners who received principal forgiveness mortgage modifications. The bill now awaits action of the Senate.

Senate Finance Committee Chairman Ron Wyden, D-Ore., first announced his plans to address expired tax extenders as a "bridge to broader reform" in February. House Ways and Means Committee Chairman Dave Camp, R-Mich., who announced this week that he will not run for reelection, has also announced plans to determine which tax extenders should be made permanent in a move toward broad tax reform.

NAFCU is keeping a watchful eye on changes that may have an impact on credit unions, including through actions on the expired tax extenders, though the association is hearing from lawmakers that credit unions' exemption from federal corporate income tax is safe.