Cite as: 531 U. S. 316 (2001)
Opinion of the Court
respect to state taxation of production credit associations. See Production Credit Assn. of Eastern N. M. v. Taxation and Revenue Dept., 2000 NMCA-021 ¶ 26, 999 P. 2d 1031, 1038, cert. denied, 128 N. M. 688, 997 P. 2d 820 (2000); Indiana Dept. of State Revenue v. Farm Credit Servs. of Mid-America, ACA, 734 N. E. 2d 551, 560 (Ind. 2000). Since the statutory history and provisions regarding the taxation of production credit associations and banks for cooperatives are virtually identical, compare 12 U. S. C. § 2077 with § 2134; compare Farm Credit Act of 1971, § 2.17, 85 Stat. 602, with § 3.13, 85 Stat. 608; compare Farm Credit Amendments Act of 1985, § 205(d)(16), 99 Stat. 1705, with § 205(e)(10), 99 Stat. 1705,3 we granted certiorari to resolve this conflict. 530 U. S. 1260 (2000).
II
Congress has expressly designated banks for cooperatives as "instrumentalities of the United States." 12 U. S. C. § 2121. We have held, in addressing state taxation of contractors conducting business with the United States, that an instrumentality is entitled to implied tax immunity only when it is "so closely connected to the Government that the two cannot realistically be viewed as separate entities." United States v. New Mexico, 455 U. S. 720, 735 (1982). Relying on New Mexico, the Director of Revenue argues that banks for cooperatives are not "so closely connected" to the United States as to be indistinguishable from the United States, and that banks for cooperatives thus are not entitled to immunity from state taxation. CoBank disagrees with this characterization and asks us to conclude that banks for cooperatives are indeed virtual arms of the United States, worthy of implied tax immunity under McCulloch.
We need not, however, reach this implied immunity question. Implied immunity becomes an issue only when Congress has failed to indicate whether an instrumentality is
3 See also Farm Credit Act of 1933, § 63, 48 Stat. 267.
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