Treasury Department estimate of CU tax exemption cost drops

The Trump Administration’s five-year estimate of the cost of the credit union tax exemption has dropped by almost a third, according to the Treasury Department’s latest estimate of tax expenditures.

The department now estimates that the credit union tax exemption will cost $10.562 billion in lost tax revenue between 2018 and 2022. A year ago, the Treasury Department estimated that the credit union tax exemption would cost the federal government $15.763 billion between those same years.

The report does not give a reason for the change.

The Treasury Department also estimated that the credit union tax exemption will cost $24.017 billion between 2019 and 2028.

In the report, the Treasury Department also reported that there are more than 50 tax expenditures larger than the credit union tax exemption.

 

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