ARLINGTON, Va.–NAFCU is offering some reassurances to credit unions after the credit union tax exemption remained in a report from the Treasury Department on exemptions that potentially could be eliminated.
The report, “Approaches to Improve the Competitiveness of the U.S. Business Tax System for the 21st Century,” initially was published earlier this year. In a revised draft, several of the tax exemptions targeted in the initial draft were eliminated, but not that of credit unions.
“While the credit union tax exemption is still included in the report, we understand that this is not intended to be a recommendation for a policy change,” said NAFCU President Fred Becker. Becker cited meetings and correspondence with Treasury representatives during 2007 in which Treasury expressed support for credit unions, and added, “Treasury is not proposing that the tax exemption for credit unions be repealed.”
