Contributions in Aid of Construction
For Utility and Pipeline Companies
Contributions in aid of construction (CIAC) include the cost of property or money received by a utility to be used directly or indirectly for the construction or acquisition of plant. CIAC identifies a source of property rather than what the property is.
This usually happens when a customer pays for some of a company’s operating property in order to receive service from the company.
CIAC are subject to property tax, unless the property is exempt from property taxation under Minnesota law.