WASHINGTON–The tax reform piece of the reconciliation process—which credit unions are watching carefully for any change to the credit union tax exemption—is now expected to be marked up by House Ways & Means on May 12-13.

The dates have not been officially confirmed.

As the CU Daily has been reporting, credit unions are more wary this year than most as Congress is under pressure to find ways to offset—known in Washington as “pay-fors”—the cost of any tax cuts.

President Trump has been pushing hard to have the tax cuts that are set to expire this year renewed.

Potential ‘Relief’

“Even though the threat of taxation is obviously something the credit union industry has been concerned about, in some ways knowing we now may get some clarity is a relief,” said John McKechnie, an advocate on the Hill for credit unions. “Credit unions have been preparing for this challenge for a long time, arguably for several years—it’s time to put all that preparation and legwork to the test.” 

Still an ‘Unknown’

What might any bill include?

“The contents of the bill are still unknown,” McKechnie added. “The Ways and Means Committee has kept details in a black box. But I feel confident that credit union advocates have done a good job of preparing for every eventuality.”