INCOME TAXES	9 Months Ended
Sep. 30, 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. However, in accordance with our regulatory accounting treatment, 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. Under this regulatory accounting approach, the income tax expense (benefit) on our consolidated statements of operations includes only the current provision. Our consolidated statements of operations included income tax benefit of $0.3 million for the three months ended September 30, 2017 and income tax expense of $0.4 million for the comparable period in 2016. We had an income tax benefit of $0.9 million for the nine months ended September 30, 2017 and income tax expense of $0.7 million for the comparable period in 2016. The 2017 income tax benefit of $0.9 million is due to our election to receive an alternative minimum tax credit refund in lieu of recognizing bonus depreciation on our 2017 property, plant and equipment additions.

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. However, in accordance with our regulatory accounting treatment, 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. Under this regulatory accounting approach, the income tax expense (benefit) on our consolidated statements of operations includes only the current provision. Our consolidated statements of operations included income tax benefit of $0.3 million for the three months ended September 30, 2017 and income tax expense of $0.4 million for the comparable period in 2016. We had an income tax benefit of $0.9 million for the nine months ended September 30, 2017 and income tax expense of $0.7 million for the comparable period in 2016. The 2017 income tax benefit of $0.9 million is due to our election to receive an alternative minimum tax credit refund in lieu of recognizing bonus depreciation on our 2017 property, plant and equipment additions.