“Smart grid” initiatives can take many forms, from improving existing generation, transmission and distribution systems with new technology and software to rolling out smart meters and consumer devices. Although the media often focuses its attention on smart meters and appliances, …
Cooperative Posts
Sale of Taxable Telephone Cooperative’s Subsidiary Generated Patronage-Sourced Income
Many cooperatives obtain interests in other entities or create subsidiaries to facilitate various business objectives. For example, electric distribution cooperatives regularly form generation and/or transmission cooperatives to procure wholesale power and transmission services. Other cooperatives create subsidiaries to operate businesses …
Exempt Electric Cooperatives Surrender Their Tax-Exempt Status to Qualify for Additional Financing
A previous AHC Cooperative Tax Brief posed the question: “Why would a cooperative give up the benefits of tax exemption?” In two recent private letter rulings, electric cooperatives (a distribution cooperative and a G&T cooperative) sought to surrender their tax-exempt …