During the American Bankers Association’s Annual Conference, Rep. Claudia Tenney (R-NY) was asked about “credit unions purchasing banks” and whether she supports a hearing before the Ways and Means Committee on credit unions. In response to the question, Rep. Tenney said that she thinks the Ways and Means Committee, of which she is a member, should hold a hearing on credit unions including their tax exemption and who qualifies for membership. She stated, “People on Ways and Means need to see the disparity in taxes, the disparity in how you decide who’s going to be a member of your credit union. Some of the rules I think are laxed. While I’m not against competition, I do think we have to have fair competition.” She went on to say that she would ask Chairman Jason Smith (R-MO) to hold such a hearing. The New York Credit Union Association and America’s Credit Unions have sent letters to Rep. Tenney in response to her comments and are planning to meet with her office.
In 2025, the 2017 Trump tax cuts that passed by Congress and signed by President Trump is set to expire. Now that republicans appear to have a government trifecta, extending the Trump tax cuts and looking at tax reform will likely be a high priority next year. “Anytime tax reform is on the table, credit unions should anticipate the possibility of a tax battle,” said Brandon Luetkenhaus, chief advocacy office of the Nebraska Credit Union League. “It’s going to be important for Congress to hear how credit unions are serving their members and the tremendous impact credit unions are having on the financial lives of their constituents and credit union members”, said Luetkenhaus. Congressman Adrian Smith (R-NE-CD3) serves on the Ways and Means Committee. “The League and credit union advocates have and continue to communicate with him and his office that credit unions are federally tax exempt because of their not-for-profit, cooperative structure and they earn that exemption through their service to members,” said Luetkenhaus.
League & Credit Union Advocates visit with Rep. Adrian Smith during
Hike the Hill in September.
