The Benefits of Credit Unions Being Tax Exempt

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credit unions tax exempt

The Wisconsin Credit Union League recently shared an article highlighting a recent study showing the benefit of the credit union tax exempt status (Read it here!). The study revealed that Tax-exempt credit unions save US consumers $15 billion per year. It also estimates losses of $5.6bn in annual federal income tax revenue if credit unions’ tax exemption was removed.

Credit unions have been exempt from federal income tax since their inception due to their non-profit, co-operative and member-owned structure.

“Credit unions put their members first,” said MMCCU President David Murphy. “Being exempt means that we can can offer lower rates on loans, better rates on deposits, and lower fees which help keep money in the average American’s pocket. This helps spur the economy, as members are able to spend those dollars at local businesses, which helps retain those businesses within the community and generates tax revenue on the state and county level as well.”

As not-for-profit co-operative financial institutions, credit unions have always put their members first by providing them with the best financial products, rates, and lower fees.

Last week, Murphy joined other Credit Union advocates in Madison for a legislative hearing regarding a bill benefiting credit unions and to address opposition from the Wisconsin Bankers Association.

“The hearing was with the Assembly Committee on Financial Institutions regarding AB 478, a modernization update to Wisconsin credit union statutes, which would reduce administrative burdens for credit unions, freeing up time and resources to serve members,” said Murphy. “We would love members to reach out to their state legislators to advocate on behalf of all credit unions for the passage of this bill.”

For more information about credit unions and tax exempt status, please contact us!

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