In the latest cooperative tax ruling, the Service ruled that a cooperative’s (“Cooperative”) gain on sale of stock in corporations that offered services to Cooperative’s members was patronage-sourced. The ruling was important to Cooperative because it expected to fail the Member Income Test of Section 501(c)(12), subjecting Cooperative to regular corporate income tax. The favorable ruling allowed Cooperative to avoid substantial taxes in the gain.
AHC attorney David R. Cook will present a webinar regarding the legal and tax aspects of power purchase agreements (PPAs). Along with two other power industry professionals, he will address accounting and tax issues involved with PPAs. In addition, David will discuss important provisions in PPAs for allocating the risks and benefits arising from PPAs.Read More »AHC Attorney David Cook Presents Webinar on Power Purchase Agreements
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.Read More »IRS Ruling Discusses Important Attributes of Power Purchase Agreements
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… Read More »AHC Cooperative Tax Brief: U.S. Cooperative Fulfills Global Needs
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… Read More »AHC Attorney David Cook To Present NSAC Webinar on Cooperative Taxation
The latest AHC Cooperative Taxation Brief discusses the Internal Revenue Service’s recent private letter ruling that confirms its long-held stance on discounting capital credits. The… Read More »IRS Confirms the Propriety of Discounting Capital Credits
A recent IRS ruling addresses how one taxable telephone cooperative managed to avoid a devastating taxable gain on the sale of its interest in a subsidiary.
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… Read More »Exempt Electric Cooperatives Surrender Their Tax-Exempt Status to Qualify for Additional Financing
While most electric cooperatives are tax exempt under Tax Code Section 501(c)(12), some of them operate as “taxable” cooperatives that are subject to a special body of federal tax law in effect before the enactment of Subchapter T in 1962. But what is a taxable cooperative, what is Subchapter T, and why would a cooperative relinquish the benefits of tax exemption? A recent IRS ruling sheds some light on these questions. The latest AHC Cooperative Taxation Brief by AHC Attorney David R. Cook Jr. discusses this IRS ruling and its implication for cooperatives.