A Message Regarding Don’t Tax My Credit Union Campaign – 4/10/25
Members of Congress are working to pass a bill by Memorial Day to extend the tax cuts President Donald Trump passed during his first administration. These tax cuts expire at the end of 2025 and members of Congress are exploring ways to make up that revenue if the cuts continue. One proposal is to remove federal tax exemption for credit unions. America’s Credit Unions, the Illinois Credit Union League, and the Defense Credit Union Council are working around the clock to educate lawmakers about the credit union difference and the impact it would have as part of the “Don’t Tax My Credit Union Campaign.”
As a not-for-profit, member owned organization, SCU’s tax-exempt status allows for those would-be tax dollars to be passed along to our members in the form of dividends, lower rates and fees, and higher earning interest accounts. In fact, an independent study commissioned by America’s Credit Unions, showed credit unions deliver more than $36 billion annually in economic benefits to American consumers compared to other financial institutions.
Taxing credit unions threatens key member benefits, including SCU’s Bonus Dividend and Loan Interest Rebate. In 2024, we returned $1 million to members through these programs, marking 34 years of bonus dividends and 17 years of loan rebates. A new tax burden could end this giveback tradition and would also result in a tax increase on America’s 142 million credit union members.
See helpful resources below to learn more and understand how you can help.
- Click here to send a pre-drafted email to lawmakers helping to educate them about the credit union difference and the impact taxation on credit unions could have to members and their communities.
- Read SCU’s blog Don’t Tax My Credit Union: Why the Proposed Tax Hurts Our Members, Our Communities, and Our Mission
ICBA Proposed Credit Union Taxation: