ARLINGTON, VA -- NAFCU expressed confidence today that a Treasury Department report which appeared to include dropping credit union tax exemption as part of a possible business tax reform will not lead to any such change.

While the credit union tax exemption is still included in the report, we understand that this is not intended to be a recommendation for a policy change," stated NAFCU President Fred Becker, who acknowledged that the report says in several places that the Department did not mean it to make any policy recommendations.

"Based on our personal meeting with Assistant Treasury Secretary Eric Solomon last September and correspondence we have received from Deputy Assistant Secretary Robert Carroll, we have been assured that the Treasury Department recognizes the important role credit unions play in our financial system and that Treasury is not proposing that the tax exemption for credit unions be repealed," said Becker.