As credit unions hunker down in defense of their federal tax exemption, theindustry does have one thing in its favor. There are no knownenemies among leadership on the House Ways and Means or SenateFinance Committees.

In fact, committee leaders have spoken in support of the creditunion tax exemption, and some have also co-sponsored industrybills.

“They have a history of being friends,” said NAFCU VicePresident of Legislative Affairs Brad Thaler of those who willshape tax reform during the 113th Congress.

All tax reform must originate in the House Ways and MeansCommittee, which means all credit union eyes are on two congressmenfrom Michigan, Chairman Dave Camp, a Republican, and DemocraticRanking Member Sandy Levin.

Dave Adams, president/CEO of the Michigan Credit Union League,said going back to the CURIA days, Camp has always been aggressively lobbied by community bankers. Yet he not onlyco-sponsored the failed 2008 reform effort, but he's also voicedsupport for increasing the member business lending cap and signedon as a co-sponsor last year for H.R. 3461, the exam reform bill.Most importantly, he's put into writing his support for the creditunion tax exemption.

“Camp is one of the conservative lawmakers in our delegation whohas made a point to tell banks he is willing to help them but notat the expense of credit unions,” Adams said.

How did Michigan credit unions develop that kind of loyalty?Adams said Michigan credit unions are great examples of grassrootslobbying done right, participating in the congressman's fundraisinggolf outing, turning up for events in Michigan's 4th District andin Washington, and supporting his re-election campaigns despite thefact that he's never faced stiff opposition.

“He knows he has strong respect from credit unions, and we'vebeen so active in building and maintaining that relationship, it'sbecome solid,” Adams said.

In fact, Camp has a good relationship with credit unions in hisdistrict, he's been known to call credit union officials to gettheir views on issues, Adams said.

“I can't emphasize strong enough how important the whole lobbyeffort is,” Adams noted. “If we had to change his perception ofcredit unions in a matter of months, that would be a very difficulttask. But the fact that we have more than 15 years of cumulativeexperience in grassroots lobbying means that relationship isalready in place.”

That's good news for credit unions not just in this Congress butfor years to come, as Adams said Camp is expected to retain hischairmanship for some time unless the Democrats are able to regaincontrol of the House.

And even if they do, credit unions would be well-served withCamp's Democratic replacement, Ranking Member Sandy Levin. The representative from Michigan's 9th District isthe brother of Sen. Carl Levin (D-Mich.), who chairs the powerfulSenate Armed Services Committee. Adams said together, the Levinbrothers have considerable influence over the Democratic Party andthe Obama administration, and through grassroots efforts, creditunions have gained their favor as well. Carl Levin was one of only21 senators who signed on as a co-sponsor of member businesslending legislation last year.

“I really think [Sandy] Levin's support for credit unions andour tax-exempt status is strong,” Adams said.

The view from Washington is just as rosy. CUNA Senior VicePresident of Legislative Affairs Ryan Donovan said both Camp andLevin have been strong supporters of credit unions through theirtenure in the House.

“Both have had very positive things to say about credit uniontax status historically, and we have had very strong workingrelationships with them and their staff,” Donovan said.

NAFCU's Thaler added that during a congressional hearing in 2005that addressed credit union tax exemption, Camp spoke out insupport of keeping credit unions tax-free.

“Clearly, he is someone who has been a friend to credit unionsand has been supportive over the years,” Thaler said. “I don't wantto try to predict the future, but his support is important, he'sbeen a good friend over the years, and I don't see any reason whythat would change.”

Levin has a similar friendly history with credit unions, Thalersaid, and added that both Camp and Levin recognize the role creditunions played in supporting Michigan's auto industry by making autoloans in tough times.

Not only do credit unions have friends in Ways & Meansleadership, Thaler said the industry counts many friends among thecommittee members, too.