Credit unions grateful tax benefits restored

Aldergrove Credit Union welcomes province’s decision to restore credit union tax benefits

Aldergrove Credit Union (ACU) is pleased by the government of British Columbia’s decision to reinstate the credit union tax treatment, which was announced in the September 11 B.C. budget update.

Previously, the lower tax rate was implemented in recognition of the fact that B.C. credit unions are in a unique position to reinvest capital back into the provincial economy.

A competitive tax environment enables credit unions to reinvest in a diverse provincial economy by creating quality, head-office jobs across the province, providing more financial support for community projects, and making more local lending decisions to help small businesses and individuals thrive.

The province had planned to phase out the small business tax rate on credit unions and increase it incrementally over the next four years. In January 2017, the government deferred this decision, pending further consultation. Without the restoration of the credit union tax treatment, B.C. credit unions faced a tax increase of over $26 million annually.

“We’re thrilled by this decision,” said Gus K. Hartl, CEO of Aldergrove Credit Union. “This permanent change allows us to continue our important work to support and lend to local businesses and invest in our communities, which is at the core of what we do.”

“We’re glad the government sees the benefits in this tax change, and we look forward to working with the government to develop legislation and regulations that enable us to grow and support our communities,” said Hartl.

ACU is a financial service cooperative located in the heart of the Fraser Valley. ACU offers personal and commercial banking, insurance and financial planning solutions to members and clients in the communities of Langley, Aldergrove, Abbotsford and Mission. The credit union has approximately 120 staff serving 17,500 members and operates six branches, three insurance offices, and three financial planning offices.

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