WASHINGTON - (05/04/05) -- A bill introduced in CongressTuesday at the behest of the banking lobby would provide billionsof dollars in new tax credits and exemptions for community banks,at the same time the bankers are stepping up their efforts torepeal the credit union tax exemption. The bill, dubbed theCommunity First Act, would: allow a 20% tax credit for closely heldSubchapter C corporation banks; provide community banks indistressed areas with a 50% tax credit; repeal the AlternativeMinimum Tax for banks up to $5 billion in assets; and exempt incomeearned on agricultural and mortgage loans in small communities fromtaxation. The measure would also provide a variety of otherregulatory relief measures for banks on reporting and privacyissues. The bill was praised by the Independent Community BankersAssociation, which has worked to get it introduced. "Our membersare excited about this proposal because it will benefit consumers,small businesses, local governments and others who depend oncommunity banks for financial support," said David Hayes, chairmanof the ICBA and president of Security Bank, Dyersburg, Tenn. "Bylifting the yoke of regulatory burden off their backs, and movingthem closer to tax parity with tax-exempt credit unions, communitybanks can focus their resources on better serving theircustomers."
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As AI and digital assets become mainstream, banks are spotting new opportunities to integrate payments with other activities.
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House Republicans overcame internal divisions to narrowly pass President Trump's tax and spending package Thursday afternoon. The measure would cut the Consumer Financial Protection Bureau's funding level, among other provisions.
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A new partnership with Google Cloud will let the Spanish bank offer Gemini to all staff after a successful ChatGPT deployment.
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Atlanta-based CoastalSouth's initial public offering prices at $21.50 a share; Valley National Bancorp announces Lyndsey Sloan will succeed Gary Michael as general counsel; Webster Financial Corporation taps a new chief risk officer and appoints a new board member; and more in this week's banking news roundup.
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Capital One closed the deal to buy the credit card provider in May and as part of the review process, decided to exit its home equity lending business.
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In a rare move for a credit union, the Seattle institution has snapped up the 13-member team that created EarnUp's AI Advisor product.
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