Congress Passes The RURAL Act - NEC Coop
Dec 19, 2019
Corpus Christi (Dec. 19, 2019) – This week, congress passed a spending package that contains the RURAL Act, the SECURE Act, and other key provisions for electric cooperatives and our members. This is a major win not only for NEC Co-op Energy but electric cooperatives across the nation and the members which local electric cooperatives are dedicating to serving.
The package includes the following key provisions:
- The bipartisan RURAL Act, which ensures that co-ops that accept government grants for storm restoration or broadband are not at risk of losing their tax-exempt status.
- The SECURE Act, which will lower the premiums that electric co-ops in the RS Plan pay to the Pension Benefit Guaranty Corporation for low risk defined benefit pension plans. This provision alone will save electric co-ops over $30 million annually.
- Repeal of the “parking lot tax,” which would have assessed taxes on about one-third of electric co-ops.
- Repeal of the 40% “Cadillac tax” on employer health plans that will help protect health care benefits for all co-op employees.
“These legislative achievements are the embodiment of the power of our network to engage in political activities,” said NRECA CEO Jim Matheson, “We were successful because it was an all hands-on deck approach, where we all got involved.”
NEC Co-op Energy wants to thank you, our members. Your support is what drives your local cooperatives to collaborate with one-another and push lawmakers into action. Because electric cooperatives are not-for-profit companies, when the co-op saves money, that protects our member’s electricity prices as well. These legislative achievements are just one example of the success electric cooperatives are capable of when we work together to fulfill the cooperative mission of proving the best and cost-effective electric service for our members.