Our Church is a 501c3 non-profit and has a contract
arrangement with Verizon and AT&T (Cell Providers) for housing their cell towers on our building because we are up on a hill
and it provides optimum performance. Included in this arrangement the Cell
Providers pay us separately for the electric usage. They have a separate meter on our site to monitor their usage and then we bill them at the higher prevailing rates as they push Lighthouse into higher electric rates.
We are getting ready to install solar carports in church's parking area that will substantially reduce our SDG&E bill (averaging around $6K/mth) to a loan
expense of $4.2K/mth. Then the Church intends to bill Verizon and AT&T at the higher SDG&E rates. Most likely this rate will be lower than our new loan expense but in the long term it is conceivable that their expense could exceed the loan amount.
1. Will our church be considered a commercial seller of electricity, by IRS, if power is sold directly to our telecom tenants? This is step ONE!
2. Will Our Church be exposed to loss of non-profit status and increased property taxation if a major revenue stream is generated from other than church donations? What is the risk? What is considered a major revenue stream for tax purposes? Can we get a formal opinion from a lawyer?