Removing Barriers Blog

Protecting the Credit Union Tax Status
Posted May 18, 2017 by CUNA Advocacy

Protecting the credit union tax status is one of CUNA’s highest priorities.  The House Ways and Means Committee is holding a hearing today to discuss how tax reform will grow the economy and create jobs.  Prior to the hearing, CUNA sent a letter to the leadership of the  Committee, Chairman Kevin Brady and Ranking Member Richard Neal, urging the Committee to protect the federal tax status of credit unions in the context of comprehensive  tax reform. 

CUNA’s letter reminds the committee of H.R. 1, the Tax Reform Act of 2014, which retained the credit union exemption from federal income tax and demonstrated the Committee’s understanding that the structure and mission of credit unions are the bedrock upon which the tax status is based and what makes credit unions unique within the financial services sector.   

The letter elaborates on number of reasons why Congress should preserve the credit union tax status: 

  • the tax treatment for credit unions continues to serve the purpose for which it was conveyed;  

  • the tax status represents good public policy, because it causes the creation of substantial benefits to the public, far in excess of its cost; and,  

  • taxing credit unions would represent a tax increase on 110 million Americans—taxpayers who paid a total of $1.2 trillion in taxes in 2014—and would likely lead to the elimination of many, if not most, credit unions. 

CUNA and America’s credit unions are very appreciative of the work done in 2014, and look forward to working with both sides of the Ways and Means Committee.  CUNA will not stop advocating on behalf of America’s credit unions and their 110 million members.