INCOME TAXES	3 Months Ended
Mar. 31, 2020
INCOME TAXES
INCOME TAXES	NOTE 14 – 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, any income tax expense or benefit on our consolidated statements of operations includes only the current provision. This liability method is included in our rate filling accepted by FERC on March 20, 2020; however, FERC may require a different method for the recovery of income taxes. Our consolidated statements of operations included an income tax benefit of $0.2 million for the three months ended March 31, 2020 and $0.1 million for the comparable period in 2019. These income tax benefits are due to an alternative minimum tax credit refund. During the three months ended March 31, 2020, we recorded a decrease in our deferred tax asset valuation allowance due to the deferred tax treatment of an abandonment loss. We concluded that a valuation allowance of $19.0 million was more likely than not needed based on the expected realization of deferred tax assets for the period ended March 31, 2020. The Coronavirus Aid, Relief and Economic Security Act (“CARES Act”) was signed into law on March 27, 2020. The CARES Act includes certain corporate income tax provisions which have been evaluated by us. The CARES Act did not have a material impact on our consolidated financial statements.

NOTE 14 – 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, any income tax expense or benefit on our consolidated statements of operations includes only the current provision. This liability method is included in our rate filling accepted by FERC on March 20, 2020; however, FERC may require a different method for the recovery of income taxes. Our consolidated statements of operations included an income tax benefit of $0.2 million for the three months ended March 31, 2020 and $0.1 million for the comparable period in 2019. These income tax benefits are due to an alternative minimum tax credit refund.

During the three months ended March 31, 2020, we recorded a decrease in our deferred tax asset valuation allowance due to the deferred tax treatment of an abandonment loss. We concluded that a valuation allowance of $19.0 million was more likely than not needed based on the expected realization of deferred tax assets for the period ended March 31, 2020.

The Coronavirus Aid, Relief and Economic Security Act (“CARES Act”) was signed into law on March 27, 2020. The CARES Act includes certain corporate income tax provisions which have been evaluated by us. The CARES Act did not have a material impact on our consolidated financial statements.