FOR IMMEDIATE RELEASE
ICBA Applauds Sens. Hatch and Lincoln for Advancing LLC Reform for Community Banks
Washington, D.C. (July 16, 2008)—The Independent Community Bankers of America (ICBA) applauds Sens. Orrin Hatch (R-Utah) and Blanche Lincoln (D-Ark.) for introducing ICBA-backed legislation that would give community banks greater access to operate as limited liability corporations (LLC).
“Sens. Hatch and Lincoln have been champions of beneficial Subchapter S reforms for many years and continue their efforts to improve the tax situation for our nation's community banks by advancing the LLC reforms in S. 3254,” said Cynthia L. Blankenship, ICBA chairman and vice chairman and chief operating officer, Bank of the West, Grapevine, Tex., “We appreciate their genuine understanding of the tax burden facing small businesses and their ongoing efforts to promote a fair and equitable tax structure. Community banks are small businesses, yet are often unable to use business forms available to other small businesses such as a limited liability corporation.”
ICBA has taken a leadership role in actively advancing the beneficial LLC reforms. The reforms are included in the Communities First Act (CFA)(H.R. 1869/S. 1405) first introduced by Rep. Nydia Velazquez (D-N.Y.) in April, 2007 in the House and by Sen. Sam Brownback (R-Kan.) in the Senate. ICBA detailed the LLC policy initiative in its 2003 Community Bank Tax Relief study and in Blankenship’s recent testimony to Congress. ICBA will continue working with Congress to enact beneficial LLC reforms.