Nearly all electric co-ops are tax-exempt. However, because of recent tax law changes, government grants are now considered income rather than a contribution to capital. These grants assist co-ops with rural development, and restoration of the electric system after major storms. To preserve a co-op's tax-exempt status, it must receive no less than 85 percent of income from members.  

 

If government grants count toward a co-op's non-member income, it threatens the co-op's tax-exempt status and hampers the co-op's ability to use the full value of the grant to benefit the communities they serve. Some cooperatives are being forced to either turn down these grants or use member revenue to pay federal taxes.   

  

Worse yet, co-ops could be forced to choose between maintaining their tax-exempt status and accepting FEMA assistance when recovering from a major storm or other disaster.

 

Congress must act now to protect the tax-exempt status of your co-op and to preserve the full value of federal, state or local grants that benefit our communities. Tell your Senators & Representative to Pass the RURAL Act.  

 

Send Your Message Today at: Action.coop/RURALAct  

Today, November 1st is the deadline to apply for the 3 $1,000 Power Upward scholarships. Adult students who are continuing their education must be active WCEC members to apply. Applications can be found at wcec.org

under Programs and Sponsorships