Earlier this year the AmericanBankers Association launched an ad campaign across Washington,D.C., aimed at credit unions and their tax-exempt status.

The billboards read: “Today credit unions are a $1 trillionindustry that pays no income tax. That's nearly $2 BILLION everyyear that could help shrink the federal deficit. Now, credit unionswant even more perks. It's time to end credit unions' indefensibleand outdated special treatment. Enough is enough.”

Now CUNA is fighting back.

CUNA and its affiliated state credit union leagues are launchingthe campaign at a time when the U.S. House and Senate have madebroad-based tax reform a major priority.

The initiative will urge lawmakers as part of any final taxreform plan to preserve the federal tax exemption credit unionsreceive as not-for-profit, member-owned cooperatives.

Credit unions have been exempt from paying income tax since 1916, when the income taxwas first instituted, because they are, according to the IRS, “organized and operated for mutual purposes and withoutprofit.”

“Policy is being formulated on Capitol Hill now, so we must actnow. We can't wait,” said CUNA President/CEO BillCheney. “It's rare that credit unions call upon their 96million members to take action, but our members will be the bestspokespeople we have, especially on an issue as vital to our futureas this.”

The campaign will emphasize that any tax on credit unions isreally a tax on its members since credit unions are cooperativelyowned by the people they serve. If credit unions were taxed, theirbenefits to members and communities will be lost, and aconsumer-friendly option in the financial marketplace will vanish,CUNA said.

The “Don't Tax My Credit Union” campaign will employdirect communication from credit unions to their members andsupporters as well as Web-based and social media channels in orderto convey a powerful and sustained message to Congress, CUNAsaid.