Contributions in Aid of Construction (CIAC) tax is a federal tax assessed to CMP on payments from customers for line extensions and on the fair market value of a private line extension provided to CMP. CMP’s line extension rates for CMP-built residential, single phase and polyphase line extensions includes an adder to cover this tax.
Customers conveying a privately built line to CMP also must pay the CIAC tax adder. CMP applies the CIAC tax amount to the amount of the private line invoice (excluding trenching, backfill, and conduit associated with underground line projects).
The CIAC tax adder is currently 15%.