January 31, 2014

Tax reform still on the table, NAFCU vigilant

Jan. 31, 2014 – Reports coming out of a retreat underway this week among House Republicans say the lawmakers could keep tax reform – which may or may not have implications for credit unions – in a prominent place on this year's agenda.

"We have yet to hear of any specific threat to credit unions' tax-exempt status, but we're staying vigilant and keeping lawmakers apprised of the value credit unions bring to the nation's economy and to taxpayers in our ongoing work to ensure preservation of the exemption," said Carrie Hunt, NAFCU's senior vice president of government affairs and general counsel.

Reports coming out of Thursday's discussion quoted House Ways and Means Committee Chairman Dave Camp, R-Mich., noting tax reform was the most-frequently noted issue in discussions of the coming year's party agenda.

NAFCU continues to hear that credit unions' exemption from federal corporate income tax has not been included in any plans drafted to date for reform. It is also watching for any other tax reform proposals that could affect credit unions, such as any that might alter the unrelated business income tax, or UBIT, and the recently expired tax extenders.