Credit Union Tax Exemption

The new Congress and administration are moving fast on tax reform which is putting the credit union tax exemption at risk—again. If these efforts succeed, the result could have sweeping consequences for your members, your business model and the financial well-being of the communities you serve.

This isn't the first time credit unions have had to defend their tax-exempt status. And it probably won't be the last. That's why we've dug deep through our library and compiled a list of key research and historical insights to help you understand what's at stake and prepare to respond with facts, not fear.

What's At Stake If Credit Unions Lose Their Tax Exemption Status

In 1990, the Filene Research Institute explored the public policy implications of imposing a tax on the net income of credit unions. The authors of the study hypothesized that a tax on credit unions would lead to:

• Declines in net income, capital levels, the number of credit unions, and the level of member involvement.
• Increases in failures, mergers, services, risk- taking, and share/ deposit rates.

Taxation has been the number one public policy issue for credit unions over its 100+ year history and continues to this day. That's why Filene has a number of reports and case studies for you and your leadership team to stay informed on this important topic to protect the future of our industry and the financial health of your members and community.