Capital Credits

The Cooperative Difference and Tax Reform

How will the new federal tax changes affect HomeWorks Tri-County Electric Cooperative?

They will have very little impact on us - because as a not-for-profit electric cooperative we do not pay federal taxes on electricity sales.

For-profit investor-owned electric utilities (IOUs) pay federal taxes. Therefore, the federal corporate tax reduction will result in lower expenses and higher profits for them.

That’s just one difference between the two business models. Another difference is what the companies do with their profits.

Capital Credits

What are capital credits? They're your ownership of your electric cooperative. Here's more information, from the May issue of Michigan Country Lines:

HomeWorks Tri-County Electric Cooperative member-owners see the benefits of cooperative principle #3 (Members’ Economic Participation) on your May energy bills.

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