The Notice of Patronage Taxable Income Allocation for Tax Purposes is issued in accordance with the Bylaws of Alfalfa Electric Cooperative, Inc. The amount of patronage taxable income for the calendar year 2021 is a net loss. When the cooperative incurs a net loss for the calendar year, no allocation is made for that year. The cooperative’s bylaws provide that “All other amounts received by the Cooperative from its operations in excess of costs and expenses shall, insofar as permitted by law, be (a) used to offset any losses incurred during the current or any prior Fiscal Year and, (b) to the extent not needed for that purpose, allocated to its patrons on a patronage basis, and any amount so allocated shall be included as a part of the capital credited to the accounts of patrons, as herein provided.” Therefore, this net loss for taxable income purposes will be offset by future tax margins, and any excess will be allocated to patrons as patronage capital. If you have any questions concerning this allocation, please contact Christy Schanbacher at 580-596-3333 x117.