CAPITAL CREDIT FAQ'S
North Star Electric Cooperative is a member-owned, not-for-profit organization, meaning we operate at cost for the benefit of our members. At the beginning of every year, any excess revenues, or margins, from the previous year are allocated to our members and later paid out in the form of capital credits. This means you, as a member-owner, benefit from any margins produced by the cooperative.
If you’re wondering about income tax issues and capital credits, capital credits are generally tax-free if the property served was used strictly as a residence. If the property was used for business purposes, members should contact their tax advisors.