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Rural Utility Cooperative Law Blog

Cooperative Tax Brief: Municipalities’ Generation Cooperative

Like public utilities, municipalities and other political subdivisions that provide electricity to customers must procure wholesale power.  A recent IRS ruling discusses municipalities’ use of a generation cooperative to procure wholesale power and related services.  The ruling explains that the generation cooperative qualified for exception under Section 501(c)(12) but concludes that income generated by the cooperative is exempt under Section 115(1).

The latest AHC Cooperative Tax Brief discusses this latest IRS ruling.  Check here to view the latest Cooperative Tax Brief.

For prior Cooperative Tax Briefs, click here.


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