INCOME TAXES	3 Months Ended
Mar. 31, 2017
INCOME TAXES
INCOME TAXES	NOTE 10 – INCOME TAXES We are a taxable cooperative subject to federal and state taxation. As a taxable electric cooperative, we are allowed a tax exclusion for margins allocated as patronage capital. We utilize the liability method of accounting for income taxes. Accordingly, changes in deferred tax assets or liabilities result in the establishment of a regulatory asset or liability. A regulatory asset or liability associated with deferred income taxes generally represents the future increase or decrease in income taxes payable that will be settled or received through future rate revenues. We had an income tax benefit of $0.3 million for the three months ended March 31, 2017 and no income tax expense or benefit for the three months ended March 31, 2016. The income tax benefit of $0.3 million is due to an alternative minimum tax credit refund in lieu of bonus depreciation.

INCOME TAXES

3 Months Ended

Mar. 31, 2017

NOTE 10 – INCOME TAXES

We are a taxable cooperative subject to federal and state taxation. As a taxable electric cooperative, we are allowed a tax exclusion for margins allocated as patronage capital. We utilize the liability method of accounting for income taxes. Accordingly, changes in deferred tax assets or liabilities result in the establishment of a regulatory asset or liability. A regulatory asset or liability associated with deferred income taxes generally represents the future increase or decrease in income taxes payable that will be settled or received through future rate revenues. We had an income tax benefit of $0.3 million for the three months ended March 31, 2017 and no income tax expense or benefit for the three months ended March 31, 2016. The income tax benefit of $0.3 million is due to an alternative minimum tax credit refund in lieu of bonus depreciation.