Essentially, credit unions have the ability, like any other business, to access the small business deduction on the first $500,000 of income, and with a taxable capital limit of up to $15 million. That will not change.
A small credit union will, in the vast majority of cases, not have any change in its tax bill at the end of the year. Credit unions that are small will qualify for the small business deduction. These are the credit unions that traditionally have not used the additional deduction because they don't need it. The additional deduction primarily benefits large and growing credit unions, and that is who the phase-out will affect.