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.

Instant Insights /

Senate Finance Committee Preserves Credit Union Tax Exemption in Draft Bill

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