The House Ways and Means Committee released a two-page outline commonly referred to as “Tax Reform 2.0” this week. This bill will likely not have any direct positive or negative effects on credit unions.
As expected, it proposes to make permanent the new and lower tax rates for individuals and closely held corporations included in the Tax Cuts and Jobs Act of 2017.
Credit unions do have some concerns related to last year’s tax law as it relates to tax exempt organizations. These include CUNA concerns related to the new excise tax on executive compensation and the new tax on nonprofit fringe benefits.
The vehicle for successfully addressing these concerns will likely be a tax technical corrections bill after the fall elections.
It is likely that legislative text of Tax Reform 2.0 will be released in September.
Additional details can be found on CUNA’s Removing Barriers Blog.