Don't Tax My Credit Union

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Credit unions are not-for-profit financial cooperatives — where members are actually owners. An institution where savers help borrowers, and borrowers help savers, allowing for higher savings dividends and lower loan rates.

In 1934, the Federal Credit Union Act was passed, highlighting that credit unions exist for people, not profit. Then, the Revenue Act of 1951 allowed for the exemption of credit unions from federal corporate income tax; this continues to stand over 70 years later. This cooperative business structure of credit unions allows for the savings from this tax exemption to be returned to credit union member/owners in the form of better rates and fewer fees. It also provides the opportunity for credit unions to invest in the communities we serve — to make them great places for member/owners to live, work, and play.

Across the United States, credit union members have benefitted from over $35 billion in consumer financial advantages, and credit unions have provided $297 billion in total economic impact. You may be asking: “How does this help CEFCU members?” Last year, CEFCU was able to support over 450 charitable organizations, little league teams, and school activities in Illinois and California. CEFCU also provides FREE financial literacy materials to schools within our field of membership — in 2024, those materials reached more than 29,000 students! Additionally, over the past 24 years, CEFCU has returned over one-half of a BILLION dollars to members in the form of an Extraordinary Dividend.

As a member of CEFCU, if credit unions are taxed — it is ultimately a tax on YOU — the member/owner of a credit union. So, we need your help! Let your elected officials know that you support CEFCU and other credit unions and oppose changes to the tax status. And, talk to your family and friends, encouraging them to reach out and take action, too!