The Credit Union National Association said last week that the membership of 11 bipartisan groups established by the House Ways and Means Committee to examine tax reform includes legislators with a solid understanding of credit unions.
“Those who understand credit unions and understand the public policy reasons for the credit union tax-exemption also know that it is something to protect for the sake of consumers,” Ryan Donovan, the senior vice president of legislative affairs for CUNA, said. “Credit unions are the best option for consumers to conduct their financial services, but taxing credit unions would eliminate this option entirely.”
Credit unions, Congress and many lawmakers have pushed to retain the credit union tax exemption under the Federal Credit Union Act, which stipulates that credit unions are exempt from federal income tax because they are member-owned institutions funded by member deposits.
The working groups will focus primarily on fact-finding, and each group has until April 15 to return their findings to Congress. Groups will consult with a number of sources, including academics, legislators, tax practitioners, stakeholders and the public, and each group will be headed by a Republican chairman and a Democrat vice chairman.
The group on charitable and exempt organizations, which will be headed by Rep. David Reichert (R-Wash.) as chairman and Rep. John Lewis (D-Ga.) as vice chairman, and the financial services group, which will be headed by Rep. Adrian Smith (R-Neb.) as chairman and Rep. John Larson (D-Conn.) as vice chairman, are likely the two groups that will examine the credit union tax exemption.