Yesterday, the House Ways and Means Committee released the tax reform bill revealing¬† no change to the credit union income tax status. According to CUNA head Jim Nussle, this is good news, but this is also the first step in a long process, and we’ll remain fully engaged as tax reform moves forward to make sure the credit union tax status stays untouched.

CUNA, the leagues and credit unions have been hard at work, and will continue our fierce, 360-degree advocacy to ensure tax reform doesn’t create any additional barriers to credit unions serving their members.

The Ways and Means Committee is expected to mark the bill up next week, and the Senate’s tax reform bill may be released, as well. Congressional leadership has given every indication they plan to move swiftly on tax reform and the House bill is likely to go to the floor before Thanksgiving.

CUNA supports efforts to strengthen the economy through tax reform, particularly ways to simplify the tax code, provide the middle-class with relief, and reduce unnecessary burdens stifling economic growth.

The devil can be in the details, which is why the LSCU advocacy team is currently diving deep into the bill to see how it may affect your credit union operations.

Specific areas of interest are any provisions relating to:

  • Alterations to unrelated business income tax;
  • Enhanced or additional IRS reporting requirements;
  • Exempt organization restrictions;
  • Changes to the home mortgage interest deduction;
  • Changes to the deductibility of business loan interest; and
  • Changes to retirement accounts.