IRS Ruling Discusses Important Attributes of Power Purchase Agreements

Posted on May 7, 2012 by David R. Cook Jr.

In the context of renewable energy project development, power purchase agreements (“PPAs”) are the cornerstone upon which the project is built and operated.  PPAs are contracts through which the developer or ultimate owner of a project sells power generated by the project to another party.  PPAs typically represent the primary, and sometimes sole, revenue source for the project.  Accordingly, PPAs should be drafted in a manner that recognizes their critical importance to both the project developer or owner and power purchaser. Continue reading →

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Posted in Energy, Energy Construction, Energy Project Development, Energy Taxation, Power Purchase Agreement, Renewable Energy, Renewable Energy Incentives | Tagged , , , , , , , | Leave a comment

AHC Attorney Discusses the Role of the Cooperative Accountant

Posted on April 26, 2012 by David R. Cook Jr.

AHC attorney David R. Cook recently spoke to a group of cooperative accountants about the role of accountants in cooperatives’ board meetings.  The presentation focused on the duties of directors, officers, and in-house accountants to the cooperative and to each other. Continue reading →

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AHC Cooperative Tax Brief: U.S. Cooperative Fulfills Global Needs

Posted on April 9, 2012 by David R. Cook Jr.

In the latest Cooperative Tax Brief, AHC Attorney David Cook discusses a recent ruling by the Service that an international financing cooperative (“Finco”) with foreign members qualified under the U.S. tax code as a Subchapter T cooperative.   View the latest Cooperative Tax Brief to see how the cooperative’s international members used the cooperative form of government to fulfill their global needs. 

To view the brief, click here.

To learn more about cooperative taxation, or to view other Cooperative Tax Briefs, click here.

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Guest Blog: Preparing Your Cooperative Staff for an Election

Posted on April 8, 2012 by David R. Cook Jr.

This blog post was prepared by guest blogger Tim Madsen of Survey & Ballot Systems. 

A cooperative, by definition, is an association of people voluntarily united to meet a common goal through democratic process and voluntary membership. Democratic cooperative governance requires an elected board that sets policies and makes decisions that are in the best interest of its members. In order for this to happen, members must have the opportunity to participate in well-run, open elections. Continue reading →

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AHC Attorney David Cook To Present NSAC Webinar on Cooperative Taxation

Posted on March 24, 2012 by David R. Cook Jr.

AHC attorney David Cook will present a webinar for the National Association of Accountants for Cooperatives entitled “An Annual Update on Cooperative Taxation.”  The webinar will cover the latest IRS rulings and guidance on cooperative taxation.

Click here for more details or to sign up.

Read more about cooperative taxation in David’s Cooperative Tax Briefs.

 

 

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IRS Provides Guidance on Member Income Test for Telephone Cooperatives

Posted on March 24, 2012 by David R. Cook Jr.

The latest Cooperative Tax Brief discusses a recent technical advice memorandum concerning the Member Income Test for Telephone Cooperatives.  The Service ruled that funds received by a telephone cooperative from two universal service funds were income to the cooperative, but were excluded from the Member Income Test of I.R.C. § 501(c)(12).

The telephone cooperative received a substantial amount of income from universal service funds because it served a very rural area.  Because most of its income was derived from universal service funds, the treatment of such funds under the Member Income Test was extremely important to the cooperative.  Fortunately, as expected, the Service ruled that such funds were excluded under a special exception for telephone cooperatives under the Member Income Test.

View the latest Cooperative Tax Brief by clicking here.

View other Cooperative Tax Briefs by clicking here.

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Tax Deduction For Energy Efficiency Projects

Posted on March 5, 2012 by David R. Cook Jr.

According to the Department of Energy, energy usage in commercial buildings continues to increase.  It comes as no surprise that building owners are seeking ways to decrease their electric utility bills through energy efficiency measures.  In addition to reduced electric bills, a tax code provision makes energy efficiency projects even more beneficial.  Continue reading →

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Renewable Energy: Why Tax Incentives Are Essential And Should Be Continued

Posted on February 19, 2012 by Roland F. Hall

The renewable energy industry has made great strides over the past few years. Growth has been in the double digits, with the benefits flowing to developers, investors, manufacturers, and the public.  The availability of capital for projects has been accompanied by rapid decreases in costs for wind and solar technologies.  The result?  Renewable energy is making strides toward being an affordable alternative to traditional energy sources.  Although nuclear, coal and gas generation still form the bedrock of American energy supply, in light of the push by regulators and the public to require use of renewable energy, reducing the cost of renewable energy sources will not only benefit the climate, but could minimize hikes in energy prices resulting from the imposition of renewable requirements.     Continue reading →

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Wind Cooperative of the Year

Posted on February 7, 2012 by David R. Cook Jr.

The Department of Energy will honor one electric cooperative that has exhibited leadership in the production of wind power this year.  It is now accepting nominations for the Wind Cooperative of the Year Award.

Eligibility:
All cooperatives that are members of the National Rural Electric Cooperative Association are eligible for nomination and award.  There is no cost for nomination.

Nomination and Award:
To nominate a cooperative for the award, click here.  Entries will be judged in four areas:

  • Corporate leadership
  • Innovative marketing
  • Benefits to customers
  • Project creativity

For more information, click here.
Past award recipients are listed here.

Good luck to all nominees!

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Guest Blogger, David Feldman of NREL, Discusses Treasury Scrutiny of Section 1603 Applications and Grants

Posted on January 31, 2012 by Guest

Recent documents released from the IRS and the U.S. Department of Treasury show increased scrutiny on Treasury’s 1603 Cash Grants in Lieu of Energy Tax Credits program.  The program has awarded a significant amount of money to renewable energy project owners.  From September 1, 2009 through September 9, 2011, the 1603 program issued around $9 billion to 20,000 projects.  This large government expenditure has put an equally large responsibility on the Treasury department to ensure the funds are used correctly. Continue reading →

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Posted in Energy Construction, Energy Project Development, Renewable Energy, Renewable Energy Incentives, Section 1603 Grant | Tagged , , , , , , | Leave a comment