Effective January 12, 2021, the Small Business Administration and the Department of the Treasury issued an Interim Final Rule concerning the Paycheck Protection Program (“PPP”). The rule applies to the second round of PPP loans under the Economic Aid to …
Capital Credits
AHC Partner Discusses Cooperatives’ Capital Credits at Telephone Cooperative Conference
David Cook will be speaking at the upcoming NTCA’s RTIME conference. The conference will be held on February 16 – 19 in Phoenix, AZ. The conference will bring together more than 2,200 thought leaders in the Rural Broadband …
AHC Partner Speaks About Corporate Director Fiduciary Duties to Telephone Company Directors
David R. Cook Jr., a partner at Autry, Hall & Cook, LLP, recently spoke at the NTCA Fall Conference. The conference was held September 21 – September 25 in Denver, Colorado and focused on the changing technology and innovation that …
AHC Attorney David Cook Presents on Capital Credits and Cooperative Tax
AHC attorney David Cook will present at the National Telecommunications Cooperative Association’s Finance and Accounting Conference concerning two important topics for telecommunications and telephone cooperatives. He will discuss “Strategies for Managing Capital Credits” and “Handling Large Gains and Losses.” Here …
IRS Approves Patrons’ “Written Consent” by Website
In a prior Cooperative Tax Post, we discussed the Service’s trend of permitting cooperatives to satisfy notification requirements of Subchapter T by modern transmission methods. In this recent private letter ruling, the Service permitted a cooperative to obtain patrons’ …
Patronage QWNAs as Debt or Equity?
Cooperative tax professionals occasionally consider whether patronage dividends, such as QWNAs, are considered equity or debt. The issue was central to a recent decision by the Service’s Chief Counsel Advisory. These promulgations are important because they are issued by the …
Capital Credits Add Up to Big Money for Electric Co-op Consumers
The following article is reprinted with permission from CFC Solutions Newsletter (17 January 2017, Vol.19, No.2)
Capital credits retired by not-for-profit electric distribution cooperatives in 2015 topped $1 billion for the first time, according to recently published data from NRECA, …
IRS Addresses Cooperatives’ Allocation Methods
To view this Cooperative Tax Brief in PDF, click here.
Allocation and distribution of earnings is a fundamental tenant of cooperative operation. It is not only important to comply with bylaws and other contractual agreements with patrons, it is …
Michigan electric cooperative latest move in continuing shift to member regulation
In May of this year, Midwest Energy Cooperative, serving southern Michigan, adopted a resolution to become member-regulated, in accordance with Public Act 167 of 2008, the Electric Cooperative Member-Regulation Act. Assuming it has fulfilled all of the notice and hearing …
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 …