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