Removing Barriers Blog

CUNA White Papers on Tax Reform
Posted November 14,2017 by CUNA Advocacy

The CUNA Advocacy and Economics teams have broken down both the House and Senate tax reform bills into short white papers.  Below you will find links and highlights of each document.

House of Representatives Tax Reform – Key Points 
CUNA White Paper

  • H.R. 1 would make no change to the credit union tax status.
  • The legislation would make changes to Unrelated Business Income Tax (UBIT) requirements that could impact credit unions.
  • The legislation would impose an excise tax on certain non-profit executive compensation.
  • The legislation would not substantively change retirement savings rules.
  • The bill would eliminate the New Markets Tax Credit.
  • The legislation would make changes to the mortgage interest and property tax deductions, and would double the standard deduction.
  • The legislation would severely limit the deductibility of business loan interest, but would exempt loans made to certain small businesses.

 

U.S. Senate Tax Reform – Key Points
CUNA White Paper

  • No change would be made to the credit union federal income tax status.
  • The TCJA would make changes to Unrelated Business Income Tax (UBIT) requirements that could impact credit unions.
  • There would be an excise tax on certain non-profit executive compensation.
  • There would be no substantive changes to retirement savings rules.
  • The TCJA would maintain the current mortgage interest deduction but eliminate deductions for interest on home equity loans as well as disallow property tax deductions. However, the standard deduction would nearly double.
  • The deductibility of business loan interest would be limited, but loans made to certain small businesses would be exempt from new rules.