Good afternoon - below is registration information for a webinar that NRTC will be holding on Broadband Funding & Taxes - this webinar may answer some of your tax questions regarding tax implications for broadband grant funds.

Michelle Hershel
Director of Regulatory Affairs
Florida Electric Cooperatives Assoc.
2916 Apalachee Parkway
Tallahassee, FL  32301
Cell:  (850) 510-1693
(850)877-6166, ext. 3

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From: O'Hara, Brian M. <Brian.O'Hara@nreca.coop>
Sent: Wednesday, February 16, 2022 1:56 PM
Subject: Broadband Tax Webinar

RESMA Regulatory,
Over the last few months the NRECA team has received several inquires from co-ops and statewides regarding the tax implications of broadband grants and income from a broadband business.   In the coming months NRECA will be working on a memo that will provide a detailed overview of the issues so cooperatives can make informed decisions.   However, we know the historic level of broadband funding available has many cooperatives making decisions in the short term that could have long term impacts in this area.   To that end, NRTC is hosting a webinar on this issue February 24.  NRECA's Russ Wasson will be a speaker.   This webinar will provide a good preview of the more detailed NRECA evaluation of the tax implications that will be delivered later in the year.  Below is information on the webinar and a link to register.

Webinar: Broadband Funding & Taxes Webinar: What You Should Know - NRTC<https://register.gotowebinar.com/register/824642937565653261>
NRTC will hold a webinar on Broadband Funding & Taxes Webinar: What You Should Know<https://register.gotowebinar.com/register/824642937565653261> on February 24 from 1 to 2 p.m. ET. How does the government - including the IRS - view broadband funding from various grant programs? Join us for an informative webinar that looks at the intersection of broadband funding and taxation. Some of the questions that will be explored include:
* Are grant funds taxable?
* What are the pros and cons of obtaining grants through a subsidiary versus a parent?
* What are the implications of the 2019 Rural Act?
* For cooperatives, how do grants affect the 85/15 rule and the prospects of serving outside of your traditional service area?
* Are grant funds treated as deferred revenue or a reduction in the cost of the asset?
* How do states treat broadband grant funding?

Brian M. O'Hara
Senior Director Regulatory Issues - Telecom & Broadband
National Rural Electric Cooperative Association (NRECA)
4301 Wilson Blvd., Arlington, VA 22203
703-907-5798 (O) 571-255-9858 (M)
brian.ohara@nreca.coop<mailto:brian.ohara@nreca.coop>
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