U.S. Capitol aerial view
The Senate Finance Committee released its portion of the 2025 reconciliation bill this week, which included significant tax provisions impacting financial institutions but notably left the credit union tax-exempt status unchanged.
In a statement, Jim Nussle, president/CEO of America’s Credit Unions, praised committee leaders for their support: “America’s Credit Unions, leagues, credit unions and the 142 million consumers our industry serves thank Senate Majority Leader John Thune and Senate Finance Committee Chairman Mike Crapo for understanding the credit union difference and protecting the credit union tax status in H.R. 1.”
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The bill included several items of interest to credit unions and their members:
- Remittance Excise Tax Exemption: While the bill retained an excise tax on remittance transfers, it now exempts transfers made from credit union accounts, other financial institution accounts, or those funded by U.S.-issued debit or credit cards. America’s Credit Unions had flagged this as a major concern and lauded the exemption as a critical improvement.
- Executive Compensation Excise Tax: The bill continued to expand the excise tax on executive compensation, a provision that could affect some larger credit unions with highly compensated executives.
- Interest Deduction for U.S.-Assembled Auto Loans: A new deduction was created for interest paid on auto loans, but it applies only to vehicles that were assembled in the United States — a move that may benefit members financing purchases through credit unions.
- “Trump Accounts” for Minors: The bill introduced new savings accounts for children, dubbed “Trump Accounts,” which are expected to resemble ABLE or Roth accounts, though full details are still forthcoming.
America’s Credit Unions noted that it is still reviewing the complete draft text and will provide further analysis soon. A June 18 webinar will offer additional updates and guidance for credit unions. The full legislative text is expected to be released in the coming days.
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Michael Ogden
Editor-in-Chief at CU Times. To connect, email at [email protected]. As Editor-in-Chief of CU Times since 2016, Michael Ogden has led the editorial team in all aspects of content strategy and execution, including the creation of the publication’s exclusive and proprietary research database of the credit union industry’s economic landscape. Under Michael’s leadership, CU Times has successfully shifted to an all-digital editorial product with new focuses on the payments, fraud, lending and regulatory beats. Most recently, he introduced a data-focused editorial product for subscribers that breaks down credit union issues into hard data, allowing for a deeper and more factual narrative for readers. In 2024, he launched the "Shared Accounts With CU Times" podcast, which offers a fresh, inside-the-newsroom perspective through interviews with leaders from the credit union industry and the regulatory world. He dives into pressing credit union issues, while revealing the personalities working behind-the-scenes to push the credit union world forward. His background includes years as a radio and TV anchor/reporter and a public relations and digital/social media manager, where he covered the food and music industries, as well as cooperatives and credit unions. Over the years, he has launched numerous exclusive video and podcast series, including a successful series of interactive backstage interviews with musicians at music festivals, showcasing his social media and live streaming production skills.
