Early draft of tax bill does not mention credit union tax status, markup scheduled for Tuesday

The House Ways and Means Committee released an initial draft of its reconciliation legislation Friday with no mention of the credit union tax status. The committee also released notice that it will mark up its tax legislation Tuesday, starting at 2 p.m. Eastern, meaning a managers amendment  with updated and complete text is expected to be released later today.  

Friday’s release mostly covers expiring provisions from the 2017 Tax Cuts and Jobs Act.  

The time is now to contact members of Congress and urge them to protect the credit union tax status. Comments can be sent through the Don’t Tax My Credit Union website, and America’s Credit Unions has additional resources, including a social media toolkit, available.  

Congress has additional pressure to pass its tax reform bill in combination with debt limit efforts before the August recess, as the Treasury said Friday it expects the U.S. to hit its debt limit by August. On this so-called “X-date,” the government will run out of funds to cover its financial obligations.  

Treasury Secretary Scott Bessent Friday urged Congress to increase or suspend the debt limit by mid-July.