Updates for Credit Unions on the CU Tax Exemption

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Bipartisan Effort to Protect CU Tax Exemption Gains Momentum 

In a strong show of bipartisan support, Reps. Juan Ciscomani (R-Ariz.) and Seth Magaziner (D-R.I.) are leading a sign-on letter urging the House Ways and Means Committee to safeguard the tax-exempt status of credit unions as they consider tax legislation this year. 

Key Details: 

• The letter is open to all House members not serving on the Ways and Means Committee. 
• It serves as a great follow-up action after recent House meetings. 
• Republican backing is particularly crucial amid discussions on tax changes via reconciliation. 
• The deadline for signatures is Friday, March 14. 

House members interested in signing can contact Gabbi Sheitelman in Ciscomani’s office at [email protected]. 

Ways and Means Committee Discussion on Credit Unions 

Last week in Washington, D.C., House Ways and Means Republicans deliberated on tax changes in their forthcoming bill, including the credit union tax exemption. 

Discussion Highlights: 

• Chairman Jason Smith (R-Mo.) aims to have a tax bill on the president’s desk by Memorial Day. 
• While credit union advocates were present, some participants pushed for changes to the tax status. 
• The committee plans to draft a party-line tax bill this week, focusing on extending President Trump’s expiring tax cuts and fulfilling campaign promises such as eliminating taxes on tips and overtime work. 
• The House budget caps the legislation’s cost at $4.5 trillion. 
• The credit union tax exemption is categorized as a Tax Expenditure valued at approximately $30 billion over the next decade.