Lawmakers Ask to Make It Clear That FCUs Are Eligible for COVID-19 Tax Credits
Without clarification, federally-chartered credit unions would be the only not-for-profits not eligible for the tax relief under the new law.
Two House members have asked Treasury Secretary Steven Mnuchin to make it clear that federally-chartered credit unions are eligible for recently-enacted paid sick and paid family leave payroll tax credits.
Reps. Linda Sanchez (D-Calif.) and Ron Estes (R-Kan.) said federal credit unions are classified as “federal instrumentalities.”
They said that two laws enacted as a result of the coronavirus crisis state that the leave policies do not apply to government agencies or instrumentalities.
They said the prohibition in the laws was aimed at government entities and not credit unions.
“That was certainly our intention when supporting enactment of these bills,” they said.
They added that without clarification, federally-chartered credit unions would be the only not-for-profits not eligible for the tax relief.
“Local credit unions continue to assist families and small businesses on the front lines of the pandemic,” they wrote. “It is our hope to not create additional burdens on these organizations as they plan for their internal operating expenses.”