Bill Number: S. 794
Short Title: Rural Electric Tax Equity Act
Introduced: April 26, 2001
Sponsor: Senator Fred Thompson (R-TN)

Purpose: To amend the Internal Revenue Code of 1986 to facilitate electric cooperative participation in a competitive electric power industry.

Summary: Amends the Internal Revenue Code to permit an exempt mutual or electric cooperative to exclude from income certain prepayments of any loan, debt, or obligation made, insured, or guaranteed under the Rural Electrification Act of 1936. Adds rules concerning the treatment of certain amounts received by taxable electric cooperatives.