Farm Bureau urges continued tax-exempt status for electric co-ops
The Montana Farm Bureau is urging its Congressional Delegation to support S.1032, the Revitalizing Under-Developed Rural Areas (RURAL) Act (S.1032). The recently introduced legislation will ensure that electric cooperatives will not jeopardize their tax-exempt status when they accept government grants for activities like expanding broadband or restoring power after storms and disasters.
“Most electric cooperatives are tax-exempt organizations that must receive at least 85 percent of their income from members to maintain their tax-exempt status,” said MFBF Executive Vice President John Youngberg in letters to Senator Jon Tester, Senator Steve Daines and Congressman Greg Gianforte. He explained that the unintended consequence of the Tax Cuts and Jobs Act, which re-characterized grants as income, is making it harder for cooperatives to meet the tax-exempt test.
“The RURAL Act ensures that we aren’t hindering development of much-needed broadband in rural Montana which is essential to modern agriculture, the farmers and ranchers who grow our food and the quality of life for rural Americans,” Youngberg said. “Montana’s farmers and ranchers embrace technology that allows their farming businesses to be more efficient, economical and environmentally responsible.”
Farmers and ranchers rely on broadband access to manage and operate successful businesses, the same as small businesses do in urban and suburban America. “Access to broadband is essential for farmers and ranchers to follow commodity markets, communicate with their customers, gain access to new markets around the world and, increasingly, to ensure regulatory compliance. We fear failure to pass the RURAL Act will hinder electric cooperatives from expanding broadband in rural areas and urge Congressional support of this Act,” Youngberg concluded.
–Montana Farm Bureau Federation
Start a dialogue, stay on topic and be civil.
If you don't follow the rules, your comment may be deleted.
User Legend: Moderator
Trusted User
As Congress Prepares for Hearing, R-CALF USA Urges Rejection of Compromised Cattle Market Reforms
Billings, Mont. – Yesterday, in preparation for the U.S. Senate agriculture committee’s upcoming April 26, 2022, hearing on the Cattle Market Price Discovery and Transparency Act of 2022 (S.4030), R-CALF USA sent a comprehensive letter…