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Taxable Generation Cooperative Qualified for Pre-Subchapter T Cooperative Status

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.

Read AHC’s Cooperative Taxation Brief here.

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