Legislative Update - issues affecting credit unions
Here are some legislative issues that affect your credit union. Federal Tax Support – Credit unions are financial cooperatives where every member has a say in our future. This cooperative structure means that we do not pay taxes on our profits. Congress ratified the federal tax-exemption on several occasions, most recently in 1998 with the enactment of H.R. 1151, the Credit Union Membership Access Act. Big banks and other financial institutions are opposed to credit unions federal tax-exempt status. http://thomas.loc.gov/cgi-bin/bdquery/z?d105:H.R.1151: Business Lending – Credit unions are limited in the amount of loans we can make to businesses. We are trying to get Congress to enact legislation which increases the credit union member business lending cap from 12.25% of assets to 27.5% for well-capitalized credit unions and adds significant safeguards to ensure that qualifying credit unions do this additional lending safely and soundly. http://thomas.loc.gov/cgi-bi