The legislation passed the committee on a 26-19 vote along party lines and now moves to the House Budget Committee where it will be combined into a full reconciliation package for consideration by the full House, the Defense Credit Union Council (DCUC) told PYMNTS in an email.
Credit unions have had tax-exempt status as nonprofit organizations for nearly 90 years, but that could change as Congress considers removing that tax exemption during the process of developing new tax-reform legislation, ABC 7 Eyewitness News reported Saturday (May 10).
The Independent Community Bankers of America (ICBA) said in a Monday press release that it called on lawmakers to eliminate the federal tax exemption for credit unions with $1 billion or more in assets.
Advocacy efforts are underway to keep the federal credit union tax exemption in place as the legislation moves through its next steps in Congress, according to the DCUC email.
The DCUC noted in a Monday (May 12) press release that amendments could be introduced at any time during the reconciliation process, with little notice.
America’s Credit Unions also noted in a Wednesday post on social platform X that the House Ways and Means Committee’s passage of its portion of budget reconciliation secured the tax status of credit unions.
The group said in a Tuesday (May 13) press release that language to change the credit union tax status could still be added at any time through the reconciliation process, which includes the House Budget Committee assembling the sections of the budget reconciliation bill and then the full House voting on the complete package.
In a Monday (May 12) letter to members of the House Ways and Means Committee, America’s Credit Unions President and CEO Jim Nussle thanked those who did not change the credit union tax status in the Amendment in the Nature of a Substitute and urged members to reject any amendments that would change this tax status as the bill advances to the House floor.
