Master Limited Partnerships Parity Act would offer renewables investors the same tax breaks as fossil fuel investors.
U.S. Senators Chris Coons and Jerry Moran are leading a bipartisan effort to reintroduce tax code legislation aimed at leveling the playing field for renewable energy investment. The Master Limited Partnerships Parity Act would enable renewable energy investors to share in tax advantages presently available only to fossil fuel investors.
Master Limited Partnerships (MLPs) are taxed as partnerships but also allow numerous investors to hold a small stake similar to stock ownership. As a qualification for MLP status, the IRS requires that partnerships generate a minimum of 90 percent of their income from specific “qualifying sources.” Where natural resources are concerned, these include oil, coal, natural gas and pipeline projects — but do not include renewables such as solar, wind, geothermal, hydropower and biomass. The MLP Parity Act proposes to change this by expanding the definition of “qualified energy sources” to include these and other clean energy technologies.
