Credit unions celebrated late Friday as the CU tax exemption remained intact through House and Senate negotiations that determined the final version of the tax reform bill.
The national credit union trade associations released statements of thanks to members of congress.
“Credit unions made their voices heard through every step of the tax reform process that any change to the tax status is unacceptable and amounts to an extra tax on 110 million Americans,” Jim Nussle, CUNA president and CEO, said in a press release. “CUNA, leagues and credit unions’ fierce advocacy efforts throughout the process resulted in this win, and now we look to build off this momentum and push Congress to enact meaningful, common-sense regulatory reform for credit unions.”
The National Association of Federally-Insured Credit Unions thanked President Donald Trump, Treasury Secretary Steven Mnuchin, Senator Orrin Hatch and Representative Kevin Brady for their support of the exemption.
"As our members know, the credit union tax exemption boosts the nation's economy by roughly $16 billion a year and allows credit unions to offer products with reduced fees and higher savings rates," Dan Berger, NAFCU president and CEO, said in a press release. "The exemption allows credit unions to serve segments of our communities in need of safe, affordable financial products. NAFCU will remain engaged as this measure moves to the House and Senate for final passage."
Predictably, not everyone rejoiced over the tax exemption preservation. The Independent Community Bankers of America released a statement expressing frustration over the bill’s protection of the CU industry.
“ICBA and community bankers across the nation remain concerned that lawmakers have yet to address the significant cost and inequity of the tax expenditures provided to the tax-exempt credit union industry and tax-advantaged Farm Credit System,” ICBA president and CEO Camden R. Fine said in a press release.