WASHINGTON — A July report from the Congressional Research Service said that both Treasury and credit unions may oppose the Communities First Act (H.R. 1869) over its tax relief provisions.
The bill would provide some regulatory relief in the way of reporting and documentation in addition to tax measures like repealing the alternative minimum tax at a cost of $842 billion over 10 years, deferral of tax on interest earned on CDs and excluding loan in rural areas from income, according to CRS. It would also expand Subchapter S tax benefits.
The report noted that certain communities, farmers, manufacturers, investment bankers offering municipal bonds and others are likely additional supporters. It added, "Opponents may include credit unions, which are not pleased with this measure because banks would get tax benefits while continuing to attack tax benefits of credit unions.
"The Department of Treasury may object to the measure's bank-related tax breaks, since it has often opposed many tax relief proposals for bankers and their customers. The measure would alter the tax climate for economic sectors beyond banking, and could thus face additional objections from those not benefited and those–including the Treasury–concerned over nonbank-related revenue losses."
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