CUNA News
  • LOG IN
  • Create Account
  • Sign Out
  • My Account
  • LOG IN
  • Create Account
  • Sign Out
  • My Account
  • Topics
    • Community Service
    • Compliance
    • Credit Union Hero
    • Credit Union Rock Star
    • Credit Union System
    • Directors
    • Human Resources
    • Leadership
    • Lending
    • Marketing
    • Operations
    • Policy & Issues
    • Sales & Service
    • Technology
  • Credit Union Magazine
    • Buyers' Guide
    • COVID-19
    • Digital Edition
    • Credit Union Hero
    • Credit Union Rock Star
    • Subscribe
    • Advertise
    • Contact
  • Advertise
  • Awards
    • Nominate Credit Union Hero
    • Nominate Credit Union Rock Star
  • Podcasts
  • Videos
  • Jobs
  • Contact

News

Home » CUNA to Congress: Not-for-profits need changes, clarity on TCJA excise tax
Press

CUNA to Congress: Not-for-profits need changes, clarity on TCJA excise tax

March 27, 2019

FOR IMMEDIATE RELEASE     

March 27, 2019  

Washington, DC 

Credit Union National Association (CUNA) sent a letter for the record ahead of the House Ways and Means Committee hearing on the 2017 tax law. Credit unions are exempt from federal income tax because of their structure as not-for-profit financial cooperatives and their mission to provide significant financial benefits to their members. There are over 115 million credit union members who benefit by $12 billion a year as a result of paying fewer and lower fees, lower loan rates and earning higher rates on deposits. 

The Tax Cuts and Jobs Act of 2017 (TCJA) recognizes the federal income tax status of credit unions. By not altering the credit union federal income tax status, Congress demonstrated its long-held belief in the credit union model and structure. However, the TCJA imposes a 21% excise tax on certain executive compensation provided by tax-exempt organizations. 

CUNA and other not-for-profit employers are concerned about the lack of parity between existing for-profit and not-for-profit employee contracts regarding the not-for-profit excise tax and the deductibility of corporate executive compensation. CUNA urges Congress to pass legislation to ensure parity in this area between the for-profit and not-for-profit sectors. 

The new tax law also imposes the unrelated business income tax (UBIT) on certain fringe benefits provided by not-for-profit employers. This provision basically taxes an expenditure made by an employer, not sales or other revenue-generating activity. CUNA has lobbied Congress to repeal this tax or at least delay its implementation until the Internal Revenue Service issues guidance that provides more clarity.  

Read the letter in full here. 

###    

About CUNA:      
Credit Union National Association (CUNA) is the only national association that advocates on behalf of all of America’s credit unions, which are owned by 115 million consumer members. CUNA, along with its network of affiliated state credit union leagues, delivers unwavering advocacy, continuous professional growth and operational confidence to protect the best interests of all credit unions. For more information about CUNA, visit cuna.org. To find your nearest credit union, visit YourMoneyFurther.com.     

 

CONTACT:     

Lauren Williams    
CUNA Communications    
202-672-3396   

 

Credit Union Magazine: Winter 2022

Winter 2022

Credit Union Magazine’s Winter 2022 issue highlights data-driven marketing, the board’s role in cybersecurity, elder abuse scams, credit unions’ auto lending advantage, and more.
Digital Edition •  Subscribe

Trending

  • CFPB issues CUNA-opposed proposal on credit card late fees

  • Auto lending report shows significant credit union member savings

  • 2023 Credit Union Hero of the Year voting open

Tweets by CUNA_News

Polls

Vote for the 2023 CU Hero of the Year

View Results
More

Champion for the Credit Union Movement

Credit Union National Association is the most influential financial services trade association and the only national association that advocates on behalf of all of America's credit unions. We work tirelessly to protect your best interests in Washington and all 50 states. We fuel your professional growth at every level and champion the credit union story at every turn.

More CUNA

  • Membership
  • Contact Us
  • Careers

Resources for

  • Credit Union Advocates
  • Leagues
  • Press
  • Providers

Our Affiliates

  • American Association of Credit Union Leagues (AACUL)
  • Credit Union Awareness
  • Credit Union House
  • CUNA Strategic Services
  • National Credit Union Foundation
GET CUNA UPDATES
© 2023 Credit Union National Association | ADA Compliance Notice & Legal
Email Us