Rural Utility Cooperative Law Blog

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.

he USDA announced on March 10, 2011, that the Rural Utilities Service (RUS) is now accepting applications for broadband loans under the Broadband Loan Program. Although a final appropriations act has not yet been passed, RUS issued the notice now

Cooperatives are eligible to receive clean renewable energy bonds (CREBs) under the Internal Revenue Code.  As explained by attorney David R. Cook, CREBs are tax-exempt bonds that offer lower-cost financing for cooperative's renewable energy projects.  The IRS allocates and awards

Attorney David R. Cook identify a number of considerations in developing renewable energy projects in a recent Construction Alert.  They combine their energy and construction expertise to remind project owners and developers of a few key points that arise in

A new class action lawsuit was filed on behalf of deceased members of South River Electric Membership Corporation, based in Dunn, N.C. The complaint centers around the electric cooperative's practice of discounting the capital credits of estates to present value,

In a previous post, we discussed litigation against cooperatives involving their capital credit practices. That post contains a link to a summary discussing specific cases. One of those cases involved Carroll Electric Cooperative Corporation, an Arkansas electric cooperative. Earlier this

Cooperatives should educate their directors, officers, managers, employees, and most importantly their members. They should emphasize the cooperative principles of (1) democratic control, (2) subordination of capital, and (3) operation at cost / allocation and return of net margins. They

Several electric cooperatives throughout the country have been the subject of class action lawsuits targeting their unretired capital credits. The lawsuits were filed by one or more members or former members against the cooperative and, in some instances, against directors