Learn more about Member Benefits
Credit unions are democratically owned and controlled not-for-profit cooperative financial institutions that take pride in their “People Helping People” philosophy. Credit unions are exempt from federal income tax because of their structure as not-for-profit financial cooperatives and their mission to promote thrift and provide access to credit for provident purposes.
The credit unions' tax status does not create an unfair market advantage. The financial benefits of credit unions' participation in the marketplace amounted to around $14.2 billion in 2016 alone, benefits realized by credit union members and non-members alike. Taxing credit unions in 2016 would account for 0.05% of 2016 federal government spending, funding government operations for 5 hours. Instead, that $14.2 billion has gone to purchase homes and cars, and into communities served by credit unions.
CUNA, Leagues, and credit unions worked together to help pass a bipartisan amendment on the Floor of the House of Representatives keeping the NCUA out of the appropriations process
A bipartisan group of 71 House members signed a letter urging the appropriations committee to fully fund the Community Development Financial Institutions (CDFI) Fund.
Both the Senate and House of Representatives released tax reform legislation -- both left the credit union tax status untouched.
Advocacy Issue
State chartered credit unions are subject to the Unrelated Business Income Tax. In the 1970s, Congress adopted the Unrelated Business Income Tax (“UBIT”) for tax-exempt organizations.
The NCUA is funded by credit unions and their more than 110 million members; it makes perfect sense that the agency should be transparent in its annual budget process.
Credit unions are democratically owned and controlled not-for-profit cooperative financial institutions that take pride in their “People Helping People” philosophy.
The congressional budget process calls for members of Congress and Senators to fund various programs through 12 appropriations bills each fiscal year.