What are Capital Credits?
- When signing up with MTA or one of its subsidiaries, you become more than just a customer, you become a member-owner or patron of the services provided by the MTA family of companies.
- One of the benefits of being part of our cooperative is that we allocate our margins to you, our member-owners and patrons, in the form of capital credits. These margins are what remains after all expenses have been paid, and the amount you receive is determined by how much you have paid for MTA services during the year.
How are Capital Credits Used?
- The bylaws of the cooperative call for MTA to use capital credits to invest in network expansion and maintenance, development of new technologies and other essential infrastructure.
- This working capital will be returned to our members at a later date.
Capital Credits Payments.
- When the financial condition of the co-op allows and the MTA Board of Directors approves, capital credits are paid out to members.
- On an annual basis, MTA’s Board of Directors reviews the financial condition of the cooperative and elects to either approve or postpone a return of capital credits to its members. Therefore, there may be several years between when credits are earned and when they are retired.
Who are Eligible Members?
Members and Patrons of MTA and its subsidiaries who had active eligible services during all or part of the year in which we allocated margins (profits) may receive capital credits.
Keep Your Information Updated
- Even when you disconnect service with MTA or move, your capital credits remain on the books until they are paid back in full. Capital credits may be paid many years into the future.
- Please keep in touch and let us know updates to your mailing address to ensure capital credit payments are mailed to the correct location when they are issued.
Deceased Members
- If you are the Personal Representative of the deceased, please reach out to MTA to notify us of the member's passing.
- In accordance with MTA bylaws, members' capital credits may be retired early in the event of their death.
- An early retirement of capital credits will result in a reduced value-based rate of 6% per annum.
- Please note, in order to early retire capital credits for a joint membership, both joint members must be deceased.
- Required documents include: copy of member's death certificate, copy of complete legal document appointing Personal Representative (this may be a will, trust documents, or court documentation), IRS form W-9, and completed and notarized MTA Capital Credits Affidavit, along with the Capital Credits Early Retirement Packet.
Have Questions?
Contact the Capital Credit Team:
Email: capitalcredits@mtasolutions.com
Call: (907) 761-2661
Fax: (907) 861-1004
Capital Credit FAQs
MTA is a member-owned cooperative and allocates its margins, or net income, to its members based on the amount they spend for telecommunication services. These allocations accumulate over time and are eventually retired or paid back to the members.
Capital credit allocations are each member’s share of the cooperative’s margins. The members’ capital credit allocations accumulate based on the members’ purchase of MTA services. Allocations do not represent cash; they represent members’ equity in the cooperative.
A capital credit retirement or disbursement is a payout to the member from their capital credit allocations.
Capital credits are retired when the MTA Board approves.
The bylaws of the cooperative call for MTA to use capital credits as working capital to fund operations, maintenance, and infrastructure, therefore, there may be several years between when credits are earned and when they are retired.
On an annual basis, MTA’s Board of Directors reviews the financial condition of the cooperative and elects to either approve or postpone a return of capital credits to its members.
After deducting any bad debt amounts owed to MTA or child support owed to the state for the member or former member, capital credit retirements will be paid as follows:
- Active members will receive their capital credit retirement as a credit to their bill if the retirement is less than $50. If the retirement is over $50, then a check will be mailed.
- Former members will receive their retirement in the form of a check sent in the mail. However, if the retirement is less than the $10 check minimum, a check will not be issued, and the retirement will remain in the capital credit account and will be paid in future years when the total retirement amount due equals $10 or more.
It is important for past members to let MTA know of any address changes, as capital credits are often made a number of years after the credits are earned and allocated.
In accordance with MTA bylaws, members’ capital credits may be retired early in the event of their death. Please note, an early retirement of capital credits will result in a reduced value-based rate on 6% per annum. If capital credits are not early retired, the payment of capital credits will remain in the member(s) name and will be retired as the MTA Board approves until the account is retired in full.
If you are the estate’s Personal Representative and wish to early retire the capital credits, you may complete a Capital Credit Estate Packet and submit it to the Capital Credits team. Please note, in order to early retire capital credits for a joint membership, both joint members must be deceased.
Estate documents consist of a Capital Credit Affidavit (form), copy of the death certificate, and legal documentation appointing a representative for the estate.
- Capital Credits Policy
- Capital Credits Affidavit
- Assignment of Capital Credits to MTA Foundation
- Business Certification of Entitlement to Capital Credits
- Certification of Ownership of Capital Credits After Divorce or Name Change
- Request for Assignment of Capital Credits to Successor in Interest or Occupancy
According to the current Internal Revenue Service limits, MTA is required to issue a 1099 to members that receive a capital credit check for $2,000 or more in a given calendar year.
For residential accounts, capital credits are generally not taxable. We suggest seeking the advice of a tax professional for specific questions.
It’s possible you moved to a new address and MTA was not notified of this change. Please keep in touch and let us know updates to your mailing address to ensure capital credit retirements are mailed to the correct location when they are issued.
If the original membership was set up as a joint account, both names will be on the capital credit check. Checks will continue to be issued in the joint account names until the account reaches a zero balance. If a change is needed to the membership names, please complete a membership addendum form Certification of Ownership of Capital Credits After Divorce or Name Change to transfer the membership to only one individual.
Generally, yes. We will need to verify your current address and make sure the account is in good standing. Please reach out to the capital credits team at 907-761-2661 to inquire about a check reissue.v
Retirements are issued to those members who have capital credit balances only for the years included in the retirement as designated by the Board. In addition, those who owe the cooperative a bad debt balance in excess of the capital credit retirement amount will not receive a retirement. If the account is inactive, a check will not be issued if the retirement is less than $10, which is the minimum check amount. Additionally, it is possible you received a credit on your bill if you are an active member. Check your MTA statement for details.
Your capital credits remain on the books until they are paid back in full. They are not immediately retired upon disconnect. Therefore, we ask that you please stay in touch and notify us of any address or member name changes. Should the Board decide that the financial condition of the cooperative permits a payment of capital credits for a year in which you were an active member, we will mail you a check to the address on file.
MTA keeps a record of all capital credit checks that are not cashed. Claims on these accounts can be made indefinitely. Please reach out to the MTA capital credits team at 907-761-2661 to see if you have any uncashed capital credits. Please remember to inform us of any address changes so we can mail you your capital credit retirement payment when the MTA Board approves a retirement.
The amount of the capital credit retirement depends on the amount of telecommunication services purchased by the member during the years included in the retirement. Your neighbor may have purchased more services from MTA in those years.
Members may request their current capital credit balance by contacting the MTA Capital Credits team at 907-761-2661.
Capital credits are not transferable or assignable to another individual, except in limited circumstances such as estate settlements or donations to the MTA Foundation, as allowed by policy. Capital credits remain associated with the original member account.
As long as your service account(s) are disconnected, you can assign future capital credits to the MTA Foundation, Inc., which will be added to the MTA Foundation Scholarship fund. To assign future capital credits to the MTA Foundation, complete the Assignment of Capital Credits to the MTA Foundation Inc.