Treasury Department says cost of CU tax exemption is growing

The ten-year cost of the federal credit union tax exemption has grown by $9.4 billion since December, the Treasury Department said in an update on the cost of tax expenditures.

One source within the credit union community attributed the growth to rising interest rates.

In a report released last month, the Treasury Department estimated the cost of the tax exemption will be $34.72 billion between 2023 and 2032. In December, the Treasury Department estimated the cost to be $25.3 billion between 2022 and 2031.

The Treasury Department periodically re-estimates the cost of all personal and corporate tax breaks.


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