December 23, 2017

Trump signs tax bill into law

President Donald Trump on Friday signed into law the Republican tax reform bill, the Tax Cuts and Jobs Act (H.R. 1). The credit union tax exemption is preserved in the bill thanks to consistent advocacy by NAFCU and numerous meetings held among key legislators, NAFCU and its members.

NAFCU President and CEO Dan Berger and the association's legislative affairs team were actively engaged on Capitol Hill and with the White House to protect the credit union tax exemption throughout the process. In August, the association met with Treasury Secretary Steven Mnuchin to discuss tax reform efforts and Berger was invited on FOX Business to explain the importance of the exemption. The association has also held numerous meetings with senators, representatives and administration officials throughout the year.

Preserving the credit union tax exemption will remain one of NAFCU's top legislative priorities. An independent tax study released by NAFCU earlier this year found the credit union tax exemption benefits $16 billion to the U.S. economy each year.

Also included in the tax bill:

  • the mortgage-interest deduction is preserved with a cap of $750,000 for newly purchased homes;
  • tax-exempt organizations will have to pay a 21 percent tax on any executive salary more than $1 million, which also applies to deferred compensation plans when monies vest;
  • the tax deduction for FDIC premiums for institutions with more than $50 billion in assets is eliminated.