Coalition Seeks Tax Clarification on Utility Aid
NACWA joined with other organizations in the municipal governance space last week on a letter to the U.S. Treasury Department seeking clarification on the taxability of certain utility financial assistance. Specifically, the letter requests that Treasury provide guidance clarifying that assistance to residential households and other non-business utility customers will not be considered taxable income. Such guidance would provide valuable certainty to utilities and municipalities that have elected to use a portion of their Coronavirus State and Local Fiscal Recovery Funds (CSLFRF) to assist households with utility costs, including water and sewer bills.
Contact Kristina Surfus, NACWA Managing Director of Government Affairs, with questions or to discuss this issue further.