WASHINGTON—As the House marks up its version of the tax bill this week, CUNA has assessed the legislation’s impact on credit unions and all Americans.
“My team and I poured through the House version of the bill,” said CUNA President and CEO Jim Nussle, noting that although credit unions’ tax status remains intact in the current draft, that could change.
“While this legislation is the first step in a long process, it's also the marker for where Congress is right now on this very important issue,” said Nussle. “The last time we saw a major tax code overhaul was in 1986. This means there's a lot of opportunity for improvements, but there's also room and time for Congress to consider everything in the tax code, including credit unions. We'll be sending updates on any substantive changes as the process moves through the House and when the Senate introduces its own bill.”
According to CUNA, the key points of the legislation are:
- HR 1 would make no change to the credit union tax status
- The legislation would make changes to Unrelated Business Income Tax (UBIT) requirements that could impact credit unions
- The legislation would impose an excise tax on certain non-profit executive compensation
- The legislation would not substantively change retirement savings rules
- The legislation would make changes to the mortgage interest and property tax deductions, and would double the standard deduction
- The legislation would severely limit the deductibility of business loan interest, but would exempt loans made to certain small businesses
For CUNA’s complete analysis, go to CUToday.info’s The Gov.