With tax season here, Rock Energy Cooperative members might be wondering if the capital credits they receive are taxable.
Capital credits generally are not taxable for individual members. Whether your capital credit refund is taxable generally depends on whether or not you claimed your energy bills as a business expense.
For example, a farm or other business claiming 75 percent business use of their energy costs would have to include 75 percent of the cash payment for the capital credits when received as income. The non-business portion is not subject to taxation.
In addition, through your SmartHub account, you can access and review your 2024 capital credit retirement information on your May or June billing statement.
Rock Energy suggests that members with specific questions should consult a tax adviser.