CUNA released its analysis of what the final tax reform bill means for credit union operations. The House-Senate tax reform conference committee reported its final tax bill, which would cut taxes by roughly $1.5 trillion over ten years and would make significant changes to and simplify U.S. tax laws.
The full House of Representatives and Senate are expected to vote on the final bill this week, which in its current form will not alter or eliminate the credit union federal income tax status in any way.
"The credit union tax status remains untouched in the bill, but there will very likely be an attempt to make corrections and that could once again put our tax status in jeopardy," cautioned Jim Nussle, CUNA President/CEO said in a communication to CUNA members. "We must remain engaged. Thus far, your engagement has made the difference. Despite Wall Street and the bankers’ best efforts, credit unions haven't even been part of the discussion because both sides of the aisle recognize the sound public policy of allowing non-for-profit member-owned cooperatives do what they do best: serve their communities."
While many other credits, deductions and tax expenditures would be eliminated or scaled back by tax reform, there are no changes to the federal tax status for state and federally chartered credit unions.
"Every time you've written to your Congressman, visited them during a Hike the Hill visit, or invited them into your credit union, you served as a shining example of the credit union difference," said Nussle. "Credit union stakeholders loudly and repeatedly have worked to make sure that any change to the credit union tax status amounts to a direct tax increase on more than 110 million Americans. If we need to make our voice heard once again as we head to the finish line, we'll call on you."