Baker Production Credit Ass'n v. State Tax Commission

Edward H. Howell, Judge.

These suits, which have been consolidated for decision, are for refunds of corporate excise taxes for the years 1958 to 1961 inclusive. They arise as a result of the defendant’s disallowance of additions to bad debt reserves as deductions in computing plaintiff’s income subject to excise tax.

The Production Credit Associations (hereinafter called PCA’s), of which plaintiff is a member, were authorized by Congress under the Farm Credit Act of 1933, to give financial assistance to farmers and ranchers affected by the depression. Several hundred were established in the…