The U.S. Senate today passed appropriations legislation to fund the government for the 2020 fiscal year. The U.S. House of Representatives approved the legislation earlier this week; thus, with the Senate vote today, the legislation will be sent to the White House for action by the president.
One measure included in the legislation would modify the rules for determining tax-exempt status of certain mutual or cooperative telephone or electric companies.
In particular, the provision would allow mutual or cooperative telephone or electric companies to not take into account as income certain government grants when applying the requirement under section 501(c)(12) that 85% or more of income consists of amounts collected from members.
For more information, contact KPMG’s National Director of Cooperative Tax Services:
David Antoni | +1 (267) 256-1627 | firstname.lastname@example.org
Or Associate National Director of KPMG’s Cooperative Tax Services:
Brett Huston | +1 (916) 554-1654 | email@example.com
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