WASHINGTON—With concerns growing about the potential threat to credit unions’ tax status this year, as Congress is expected to rewrite the tax code, the House Ways and Means Committee held the first hearing on tax reform in the 119th Congress Tuesday.
The hearing primarily focused on tax credits related to children, families, and the middle class—and the credit union tax status was not addressed, America’s Credit Unions reported.
With several Tax Cuts and Jobs Act provisions set to expire this year, America’s Credit Unions and the and the Defense Credit Union Council each wrote letters to the committee prior to Tuesday’s hearing sharing the benefits of the CU tax status to the economy and communities across the nation.
Following the hearing, DCUC Chief Advocacy Officer Jason Stverak stated the trade group remains “steadfast” in its commitment to preserving the tax-exempt status of credit unions, “a critical component of their ability to serve servicemembers, veterans, and their families. Credit unions provide essential financial services that empower our military community to achieve financial security, often in remote or underserved areas.
“We are encouraged by the ongoing discussions in Congress and look forward to working with the Ways and Means Committee to ensure tax policies continue to reflect the vital role credit unions play in supporting financial readiness and stability for those who serve our nation,” Stverak continued. “Protecting the tax status of credit unions is not just about fairness but about ensuring access to affordable financial services for millions of Americans.”