CU Tax Exemption Likely Safe; House & Senate Prep to Resolve Differences
The tax overhaul legislation passed by the Senate early Saturday retains the credit union tax exemption—virtually ensuring that it will be retained in any tax legislation sent to President Trump this year.
The Senate passed its tax bill, 51-49 early Saturday.
While last-minute changes were being made late Friday night, no credit union-related changes were made.
Since the House and Senate bill retain the credit union tax exemption, it would be difficult to kill the exemption when House and Senate conferees meet on the legislation.
“Something that is in neither the House or Senate bills but then appears in a conference report is beyond the scope of matters committed to conference by either House and subject to a point of order,” said Donald Wolfensberger, former staff director of the House Rules Committee and a congressional scholar at the Woodrow Wilson International Center for Scholars.
“Conference committees are established to resolve disagreements between the House and Senate over their versions of the same bill,” the Congressional Research Service said in a 2015 report. “Therefore, the authority of conferees is limited to matters in disagreement.”
While Washington lobbyists continue to scour the bill, the American Bankers Association, which has lobbied hard to kill the exemption, already said it is disappointed that the legislation does not change it.