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CUNA, Cornerstone Examining New Tax Reform Bill and Those to Come
Friday, November 3, 2017 6:35 AM

The latest tax reform bill was released yesterday by the House Ways and Means Committee. While initial analysis shows no change to the credit union income tax status, it's by no means a certainty. This bill is the first step in a long process, and Cornerstone and CUNA will remain fully engaged as tax reform moves forward to make sure the credit union tax status stays untouched.

"Today's news that the credit union tax status remains unchanged in the House tax reform bill can be attributed in large part to the collective and consistent efforts of CUNA, the Leagues, and credit union advocates over the years," said Jim Phelps, Cornerstone's chief advocacy officer. "Cornerstone is committed to protecting the credit union tax status and will continue to engage with members of our congressional delegation to ensure they understand the unique value proposition credit unions provide to their members." 

CUNA and Cornerstone support 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 that stifle economic growth. Importantly, we need to be alert to any ways the final bill may affect credit union operations.

The Ways and Means Committee is expected to mark up the bill next week, and we anticipate the Senate's tax reform bill will be released as well. Congressional leadership has given every indication they plan to move swiftly on tax reform, and we've learned that the House bill is likely to go to the floor before Thanksgiving. We're particularly interested in 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.

Looking Forward
Below is a timeline of how things could and should progress for the remaining weeks of 2017 in regard to tax reform: 

House of Representatives
Nov. 6 and 7:          House Ways & Means Committee will markup the bill 
Week of Nov. 13:    The full House will vote on the tax bill 

Senate 
Week of Nov. 6:      Senate Finance Committee will release their own version
Week of Nov. 13:    Senate Finance Committee will hold markup of the bill 
Week of Nov. 20:    Senate floor consideration of the bill 

According to CUNA's Removing Barriers blog, if and when the House and Senate both pass tax reform legislation, the House and Senate will conference and reconcile the difference in their tax legislation. If that goes well, the House and Senate will pass the conference report the week of Dec. 18, leading to the President signing tax reform into law by Christmas.

What can you do?
Stay engaged. The credit union system may need you and your members in the coming weeks. In the coming weeks, be on the lookout for news, action alerts, and updates from your Cornerstone and CUNA advocacy teams.

Find more information at CUNA's Removing Barriers blog.