Rural Utility Cooperative Law Blog

The IRS has provided guidance on how exempt taxpayers, like Section 501(c)(12) cooperatives, can claim a refund after the repealed provisions concerning qualified transportation fringes.  You can visit the IRS site for more information.  The Taxpayer Certainty and Disaster Tax Relief Act of 2019

On August 1, 2019, the Federal Communications Commission proposed closing the rural digital divide by establishing the Rural Digital Opportunity Fund, which would direct up to $20.4 billion to expand broadband in unserved rural areas.  When the FCC finalizes its proposed rules, many rural homes and small businesses would

On October 30, 2019, the Georgia Court of Appeals vacated, reversed, and remanded the denial of a cooperative bank's summary judgment motion on fiduciary duty and other claims from prospective borrowers in AgSouth Farm Credit, ACA v. West.  Borrowers brought action against an agricultural cooperative bank. They alleged the bank's failure to extend loans caused

cThese proposed regulations provide guidance to cooperatives to which sections 1381 through 1388 of the Internal Revenue Code (Code) apply (Cooperatives) and their patrons regarding the deduction for qualified business income (QBI) under section 199A(a) of the Code as well

Tax Problem for Utility Cooperatives’ Grants

Notice 2019-43 updates and clarifies timeframes when an energy property must be in service, which is the end of a calendar year no more than four years after the calendar year which construction began. Specifically, the notice provides that the

David R. Cook Jr., 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 meets consumer demands and connects their communities to

C&A attorney David Cook will present a webinar with CPA Bill Miller on the "Electric Cooperatives and Tax Reform: One Year Later -- the Good, the Bad, and the Ugly."  The webinar will occur on April 23, 2019, at 2:00

Pineland Telephone Cooperative has started laying fiber optic lines in Americus that will provide high internet speeds for businesses.  The broadband service will provide gigabit fiber connectivity which Pineland Telephone Cooperative tells News3 is faster than most providers in the

A new and innovative pilot program called ReConnect will offer federal financing in the form of loans, grants, and loan-grant combinations.  This financing will promote broadband deployment in areas of rural America that do not currently have sufficient access to

Over the past year, we have been posting on the tax bill passed on December 22, 2017, as Public Law 115-97 (the “Original Act”).  The Original Act substantially amended the Internal Revenue Code including provisions that directly impact cooperatives.  Prior

Three longtime members of Rappahannock Electric Cooperative (REC) have filed a petition with the State Corporation Commission (SCC) in an effort to force a vote on more transparency at the organization.  The non-profit public interest law firm Appalachian Mountain Advocates

Sparks continued to fly in the ongoing dispute between Louisiana Public Service Commissioner Foster Campbell and Claiborne Electric Cooperative.  Originally, the rift was created during Claiborne Electric’s request for approval from the LPSC to seek financing for rural broadband internet,

Innovative partnership is bringing high-speed internet to underserved rural areas in Iowa and Minnesota.

Class-Action Lawsuit Focuses on Cooperative Board Compensation A South Carolina electric cooperative, Tri-County Electric Cooperative, Inc., was recently named in a class-action lawsuit focusing on its board’s compensation.  The lawsuit was filed by member Roy C. Smith on behalf of all

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

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, doing

Mississippi’s utility regulator, the Public Service Commission, wants to permit electric cooperatives to offer broadband to its customers.  PSC Commissioner Presley, along with 48 lawmakers and representatives of more than a dozen Mississippi electric cooperatives, recently traveled to Alabama to visit

Part III of the series on the impact of tax reform on cooperatives continues the prior part’s focus on tax-exempt organizations, including Section 501(c)(12) electric, telephone, and telecommunications cooperatives.  This part discusses a tax imposed on excess executive compensation. On

Notice 2018-15 provides that the IRS shall not process applications for, or issue allocations of, the remaining unused authority to issue new clean renewable energy bonds under § 54C of the Internal Revenue Code (the Code) under Notice 2015-12, 2015-10

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

Part II of the series on the impact of tax reform on cooperatives discusses the changes to Unrelated Business Income Tax (“UBIT”).   Whereas Part I primarily focused on taxable cooperatives and new Section 199A, this part focuses on tax-exempt cooperatives

On December 22, 2017, Congress’ new tax reform bill became law as Public Law 115-97 (the “Act”).  The Act substantially amends the Internal Revenue Code including provisions that directly impact cooperatives.  This post is the first in a series that

Taxable cooperatives – including Subchapter T cooperatives and taxable rural telephone and electric cooperatives – must determine whether income and expenses are considered patronage-sourced or not.  This is called patronage determination.  It is critical to taxable cooperatives because it determines