On December 20, 2019, the President signed into law the RURAL Act, H.R. 2147, which fixes an error in the 2019 tax reform law (Public Law 115-97). The error was expected to result in taxation of government grants, and Section …
Telecom Coops
Tax Reform Act Impacts Cooperatives, Part IV: Impact on Governmental Grants
Perhaps the most impactful aspect of the recent tax reform law is the change to the treatment of governmental grants. Many cooperatives qualify for governmental grants in furtherance of their community benefits, such as electric, telephone, and broadband service and …
Northwest electric coop sells telephone subsidiary to executive officers
Three executives of Eastern Oregon Telecom (EOT) announced in May they have purchased the internet and phone provider from its parent company Umatilla Electric Cooperative. EOT General Manager and CEO Joe Franell, CFO Paul Keeler and COO Richard Holbo, …
Cooperatives Should Review the FCC’s New Order Concerning Net Neutrality
Cooperatives provide high-speed broadband services in metropolitan and rural areas throughout the country. So they should pay attention to the Federal Communications Commission’s recent action affecting broadband service providers.
The FCC issued a ruling on the regulatory classification of broadband …
Rural broadband providers benefit from USDA Community Connect grants and loans
The United States Department of Agriculture (USDA) announced this month the recipients of over $200 million in loans and grants to bring broadband to hundreds of unserved and underserved rural communities. These awards, part of the Community Connect Program, are …
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 …
Fiber-Installation Contracts
As more and more cooperatives provide fiber internet to their members and customers, it may be helpful to review fiber-installation contracts with third-party installers. Attorney David Cook recently published an article in Rural Telecom, the magazine of NTCA – The …
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 …
Lender Discusses Differences Between Broadband and Electric Service
The following article is reprinted from CFC Solutions News Bulletin (17 January 2018, Volume 19, Number 2).
With more electric cooperatives looking into providing broadband service to unserved and underserved rural communities, CFC Senior Vice President for Member Services Joel …
Utility coops partner to bring members ‘up to speed’ with broadband access
Most Americans have multiple high-speed wireless choices when it comes to Internet access but many residents living in the less-populated, more rural parts still have to rely on 90s technology, i.e. dial-up, for their data needs. Now, cooperatives that have …