Nussle: Senate Finance Committee recognizes value of credit unions
The credit union tax status remains secure in the Senate Finance Committee’s sections of the One Big Beautiful Bill, (H.R. 1). America’s Credit Unions President/CEO Jim Nussle thanked the committee Tuesday, while also encouraging vigilance in protecting the credit union tax status as the bill continues through the legislative process.
“We thank Chairman Crapo and the members of the Committee for your leadership in protecting the credit union tax status in this proposal,” Nussle wrote. “We urge you to reject any amendments that would change the tax status of credit unions as this bill advances through the Senate.”
Credit unions also support Finance Committee language to provide exemptions for a new remittance transfer tax and reporting requirements on remittances from credit union accounts and credit and debit cards; and allow members to deduct interest paid on auto loans for personal vehicles assembled in the United States.
Other provisions affecting credit unions include:
- Eliminating the tax credit for previously owned electric vehicles (EVs) and most new EVs placed in service after Dec. 31, 2025;
- Creating long-term savings accounts for education, homeownership, entrepreneurship, etc. Credit unions will be able to offer these accounts to members, though they may have to work through a credit union service organization or third-party provider to offer the product;
- Expanding the excise tax to all employees making more than $1 million annually;
- Allowing a deduction in an amount equal to the qualified overtime compensation received during a tax year; and
- Changing the Employee Retention Tax Credit to impose certain penalties for failure to comply with due diligence requirements to claim the credit and extend the assessment period to six years (up from the current three or five years).
Read the full letter sent to the Senate Finance Committee here.
An overview of the credit union impacts in the Senate version of the bill is available here.
