New tax legislation excludes credit unions

Rep. Devin Nunes (R-CA), a senior Member of the House Ways & Means Committee, will introduce legislation updating the nation’s tax policy. As a matter of offsets, he has included a financial institutions transaction tax.The bill is expected to be introduced in the next few weeks.

The LSCU received an advanced copy of the bill, which remains in draft form. The legislation explicitly removes credit unions from any form of taxation. This is a big victory for credit unions, as it not only upholds the credit union tax exemption, but it specifically states an exemption for credit unions. While the League does not expect any type of comprehensive tax reform in 2016, it does remain vigilant of any potential threats.

The House Ways and Means Committee governs federal taxes.