Credit Union Times ran a story on Nov. 14 stating that the credit union tax exemption has been included on
H.R. 6474, the Implementation of the Simpson-Bowles Spending Reduction Act . The measure was sponsored by Rep. Dennis Ross (R-FL) and proposes to make several changes to the tax code, closing loopholes and eliminating tax expenditures, including the credit union tax exemption. The League's Governmental Affairs team quickly got in touch with Rep. Ross' office and found out that credit unions were included in the wrong section of the bill. Anthony Foti, Rep. Ross' deputy chief of staff, said that the mistake will be corrected.
"We regret and are embarrassed that the credit union exemption was included in the "phase-out" section of the bill. We had intended it to be included in the "maintained" section," said Foti.
This means that credit unions will be placed in a section of the bill for entities to maintain their tax status. The "phase-out" section is for entities that will be looked at closer by the House. Foti said that a manager's amendment will be put forth on the bill to place credit unions in the "maintained" section of the bill. He said that legislative counsel and the bill's clerk would not allow Rep. Ross to pull the bill, make the correction and resubmit it.
Foti also says that Rep. Ross is a "staunch supporter of credit unions and will continue to be a leader on your behalf." Rep. Ross' office is sending the CU Times a statement to correct the Nov. 14 story. If you have any questions regarding H.R. 6474, contact LSCU VP, Governemental Affairs
Jared Ross at 866.231.0545 ext. 1012.