Inadvertent Tax Bill Language Could Jeopardize Exempt Status for Coops

Coops that accept any government grants may find their tax-exempt status at risk. To be considered tax exempt, electric coops are limited to a 15 percent threshold of non-member income. As written, the 2017 tax law counts money received from any government grant as non-member income, where previously, most such grants were considered contributions to capital.

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