Arkansas water co-op heads to court to settle dispute over capital credits

Since 2009, at least 14 cases have been filed against electric cooperatives over patronage capital (or capital credits) in eight states: Alabama, Arkansas, Georgia, Missouri, New Mexico, North Carolina, South Carolina, and Texas. Now the membership of a water utility …

USDA Magazine Article Discusses Management of Capital Credits and Patronage Dividends

USDA Magazine Article Discusses Management of Capital Credits and Patronage Dividends

The USDA publishes a bi-monthly magazine, Rural Cooperatives, which covers various issues encountered by cooperatives of all types.  Recently the magazine published an article written by attorney David Cook

Cooperative Tax Brief: Cooperatives May Offset Bad Debt With Capital Credit Balances

Cooperatives May Offset Bad Debt With Capital Credit Balances

Like for-profit companies, cooperatives encounter bad debt of members and patrons.  They can initiate collection efforts to pursue bad debts, but because their members are also their owners, debt collection can …

AHC Cooperative Tax Brief: Proposed Amendment to Section 501(c)(12) for Water Companies

On November 29, 2012, Senator Udall of Colorado submitted a bill to amend Section 501(c)(12) as it relates to mutual ditch and irrigation companies.  The bill would (i) modify the Member Income Test by exempting certain income and (ii) codify …