Tax Cut Credit True-up
On Jan. 1, 2018, the new corporate tax rates established by the 2017 Tax Cuts and Jobs Act went into effect, dropping the federal corporate tax rate on taxable income from 35% to 21%. As a result of the change, MGE passed the utility-related savings on to both electric and gas customers in the form of bill credits in 2018.
The impact of the 2017 Tax Cuts and Jobs Act was reevaluated this year based on 2018 revenues as that was the first year MGE was taxed under the new corporate tax rate. Based on the reevaluation, MGE issued a one-time bill credit to both electric and gas customers in August.
On Aug. 29, 2019, active residential, commercial and industrial customers received a one-time credit that covered savings already collected from customers in 2018. The amount of the credits varied for commercial and industrial customers. You can learn more at mge.com/taxcutcredit