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The expiration of provisions of the 2017 Tax Cuts and Jobs Act at the end of 2025 will trigger broader tax legislation. ICBA is positioning itself to obtain additional tax relief for community banks and to protect them and their customers from any tax increases.
ICBA advocates for extension of expiring tax relief provisions including the deduction for Subchapter S shareholders under Section 199A, the individual rates, and the higher estate tax deduction. ICBA also urges additional corporate rate relief, enactment of ACRE (see below), and taxation and comparable regulation of credit unions.
ICBA will continue to oppose any offsets that would increase taxes for community banks or their customers. ICBA supports the Main Street Tax Certainty Act (H.R. 703/S. 213), which would make Section 199A permanent.
Read More: Legislative Update - Tax Policy
ICBA is working with Congress to update asset thresholds for the application of regulatory mandates across the board. Tiered regulation, with appropriate thresholds, recognizes the significant differences between community banks and large, complex institutions in terms of the risks they pose to consumers and to the financial system. Threshold relief has not kept pace with industry consolidation and the increasing average asset size of banks.
ICBA opposes the CFPB’s 1071 rule — which requires lenders to collect and report personal data on small business credit applicants. ICBA supports legislative efforts to both fully repeal Section 1071 and efforts to reform 1071 so fewer community banks must comply.
Additionally, ICBA intervened in a suit against the CFPB for exceeding its statutory authority and acting arbitrarily and capriciously. On February 7, 2025, a U.S. Court of Appeals temporarily paused the rule and extended its compliance deadlines until further notice.
Support HR 976 - The 1071 Repeal to Protect Small Business Lending Act, sponsored by House Small Business Committee Chairman Roger Williams (R-TX). The legislation is led by Senator Kennedy (R-LA) in the Senate. This bill would fully repeal section 1071.
Support HR 941 – The Small LENDER Act, sponsored by House Financial Services Committee Chairman French Hill (R-AR). The legislation is led by Senator Boozman (R-AR) in the Senate. This bill would reform 1071 so that fewer community banks must comply.
Read More: Regulatory Update - 1071
ICBA has recommended six key principles for a new Farm Bill and several legislative priorities. These include ample funding for commodity programs, rural broadband, and crop insurance.
ICBA advocates for higher USDA guaranteed loan limits and quicker USDA loan approvals, while opposing Farm Credit System expansions for non-farm business lending, permitting FCS
home loans in towns of 10,000 in population, and exemptions from Section 1071. ICBA supports reintroduction of the ACRE Act. The bipartisan legislation would create a tax exclusion for interest on loans secured by agricultural land and residential mortgages in rural communities under 2,500 population.
Read More: Legislative Update - ACRE
Read More: Legislative Update - Farm Bill
ICBA opposes the CFPB’s overdraft rule, which exceeds the bureau’s statutory authority and violates existing regulations that have determined overdrafts are not extensions of credit.
The rule’s arbitrary restrictions will harm consumers who depend on overdraft protection to purchase necessities when facing temporary cash short falls, causing them to experience the reality of rejected payments or rely on unscrupulous funding sources. ICBA supports Congressional Review Act (CRA) resolutions disapproving the rule.
Support H.J. Res 59 / S.J. Res 18 – CRA resolution disapproving of the CFPB overdraft rule, sponsored by Senate Banking Committee Chairman Tim Scott (R-SC) and Financial Services Committee Chairman French Hill (R-AR). These resolutions would repeal the CFPB’s overdraft rule.
Read More: Regulatory Update - Bank Fees
ICBA supports the “Promoting New Bank Formation Act” introduced by Senator Cindy Hyde-Smith (R-MS) in the Senate and Rep. Andy Barr (R-KY) in the House. This legislation would promote the creation of de novo community banks, especially in America’s rural areas, by providing more regulatory, capital and lending flexibility for newly chartered banks.
Since passage of the Dodd-Frank Act, only a handful of new banks have been created each year, on average. New charters are needed to offset the impact of consolidation and increase access to banking services for consumers and small businesses.
Support HR 478 / S. 113 – The Promoting New Bank Formation Act, sponsored by Rep. Andy Barr (R-KY) and Senator Cindy Hyde-Smith (R-MS).
Stablecoin regulatory frameworks must provide clear guidelines that effectively address risks without creating opportunities for regulatory arbitrage and disintermediating community banks, which provide crucial support to local economies.
ICBA opposes efforts to grant nonbank stablecoin issuers access to Federal Reserve master accounts and novel charters that do not subject nonbank issuers to the same rigorous standards imposed on community banks.
Current legislative proposals include:
S. 394 – The GENIUS Act, sponsored by Senator Bill Hagerty (R-TN)
Discussion Draft – The STABLE Act, sponsored by Reps. French Hill (R-AK) and Bryan Steil (R-WI)
Discussion Draft – Clarity for Payments Stablecoins