Skip to main navigation.

Co-op Tax Exempt Status

Electric cooperatives are not-for-profit, consumer-owned, community-focused organizations that provide safe, reliable, affordable power to their consumer members. Recent changes to the tax code by Congress cut right to the heart of who we are as not-for-profit, tax-exempt co-ops.

These changes now classify government grants as non-member revenue, which means if your co-op receives FEMA disaster relief aid, energy efficiency grants, economic development support, or rural broadband grants, your non-member revenue will increase and your tax-exempt status will be at risk.

NRECA is leading a co-op advocacy effort to pass the bipartisan RURAL Act, which will restore certainty and common sense by ensuring that when co-ops restore power after a storm or invest in broadband to close the digital divide, those co-ops won’t also have to spend more of their members’ money paying taxes.

As Congress returns from recess, it is vital for all of us in the co-op family to push Congress to pass this legislation. Watch the video below or read this article to learn more about this issue and visit to support RURAL Act.

Powered by Touchstone Energy Cooperatives Logo
Where to use your connections card All things regarding kids Issues affecting cooperative members