The Senate voted Saturday morning in favor of the Tax Cuts and Jobs Act, passing a tax reform bill that leaves the credit union tax status untouched.
“Both chambers of Congress have now passed tax reform bills without proposing any change to the credit union tax status, true evidence that both sides of the aisle recognize the sound public policy and consumer benefit credit unions’ tax treatment brings to financial services,” said CUNA President/CEO Jim Nussle. “As the House and Senate convene to work out the differences in the bill, CUNA will continue its engagement to ensure that any tax reform bill signed into law makes leaves the credit union tax status untouched.”
The original Senate bill included provisions that would have imposed new Unrelated Business Income Tax (UBIT) requirements on credit unions and trade associations like those that represent credit unions. This provision would have imposed UBIT on logo and royalty income that many credit unions and others depend upon.
CUNA opposition resulted in this provision being eliminated from the final bill.
The House passed its version of the Tax Cuts and Jobs Act (H.R. 1) in November. CUNA’s analysis of both House and Senate bills is available, addressing what various provisions in the bill mean for credit union operations.
Both chambers are expected to conference in the coming weeks to resolve any differences in the two bills.
Additional details are available on CUNA's Removing Barriers Blog.