Private business use

Private business use

October 01, 2017 | By Keith Martin in Washington, DC

Private business use of municipally-owned power plants and transmission lines can subject the interest paid on bonds used to finance such projects to federal income taxes.

An example of private business use is where a long-term power purchase agreement is signed to supply the electricity from a municipal power plant to a private company.

No more than 10 percent private business use is allowed.

A joint action agency that supplies