ICBA voices support, concerns about tax reform legislation

The Independent Community Bankers of America (ICBA) told the leadership of the House Ways and Means Committee that it is encouraged by several provisions recent tax reform legislation, but also has some concerns.

In a letter to committee chairman Kevin Brady (R-TX) and ranking member Richard Neal (D-MA), ICBA President and CEO Camden Fine said community bankers support many elements of the Tax Cuts and Jobs Act (H.R. 1).

“On behalf of the more than 5,700 community banks represented by ICBA, I write to thank you for undertaking the critical and ambitious policy challenge of comprehensive tax reform,” Fine wrote. “ICBA and community banks strongly support your efforts to craft pro-growth tax reform.”

The bill calls for a permanent 20 percent corporate rate, estate tax relief, repeal of the alternative minimum tax for individuals and corporations, and the permanent extension of the Section 179 deduction.

Community bankers support all these provisions and are pleased that the bill does not repeal the deduction for business interest.

However, ICBA has several concerns with the bill.  One concern is that it does not eliminate or curtail taxpayer subsidies given to credit unions and Farm Credit System lenders. It is also worried that it would limit deductions for Federal Deposit Insurance Corporation premiums and terminates the new markets tax credit for low-income communities, among others.