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The Maine CU League pointed to the cumulative and combined advocacy efforts of the League and the Credit Union National Association (CUNA) as playing key roles in helping keep the credit union tax status untouched in the sweeping tax overhaul that was passed by Congress and expected to be by President Trump before Christmas. "Our frequent communications and visits with our members of Congress, as well as CUNA's tireless day-to-day efforts on Capitol Hill all made a difference. Whenever legislation that makes significant changes to our tax code is proposed, it raises concern that the credit union tax exemption is at risk. The advocacy by CUNA and leagues and the strong relationships that have been built on Capitol Hill certainly helped to keep our status unchanged. We had record participation in advocacy efforts this year, and it paid off for credit unions. Thank you to all that took the time to get involved," remarked Todd Mason, President of the Maine CU League.
While many other credits, deductions and tax expenditures would be eliminated or scaled back, this bill made no change to the federal tax exemption for state and federally chartered credit unions.
"Credit unions said loudly and repeatedly throughout this process that any change to the credit union tax status amounts to a direct tax increase on 110 million Americans, and Congress heard our message," said CUNA President/CEO Jim Nussle. "With tax reform complete, we're focused on much-needed regulatory relief for credit unions and American consumers."
The changes take effect Jan. 1. Benefits will soon begin to appear for many Americans in their paychecks, as employers adjust tax withholdings early in 2018. But the full result of the bill will be difficult to discern for many until April 2019, when the 2018 tax filings are due.
Resources:
Read CUNA's full analysis on what the tax reform bill means for credit unions