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, 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.
“[MLP projects] get access to capital at a lower cost,” said Senator
Coons (D-DE), adding that traditional MLPs are “highly effective at
attracting private investment.” Coons said that renewable energy
investors are prevented from forming MLPs, which he believes can have a
starving effect on the growth of domestic renewable energy prospects.
Coons cited “tremendous progress in the last several decades” by
renewable energy technologies and added “they deserve the same shot at
success in the market as traditional energy projects.” He said an update
to the tax code to allow renewable and non-renewable energy sources the
opportunity to perform alongside one another on a level playing field
would support a necessary all-of-the-above energy strategy.
Senator Moran (R-KS) said that MLPs have proven successful at growing
the country’s energy infrastructure and urged the inclusion of clean
energy alternatives. “In order to grow our economy and increase our
energy security,” Moran said, “sound economic tools like master limited
partnerships should be expanded to include additional domestic energy
sources.”
The MLP Parity Act is being co-sponsored by Representatives Ted Poe
(R-TX) and Mike Thompson (D-CA). Poe said the initiative would render
turmoil in the Middle East “irrelevant” to U.S. energy security and
called it a “common-sense bill” that would empower all sectors of
domestic energy production. Thompson echoed these sentiments, stating
that the bill would “create jobs, strengthen our national security,
reduce our dependency on foreign oil and move closer to energy
independence.”
Additional support for the MLP Parity Act has come from senators
Michael Bennet (D-CO), Susan Collins (R-ME), Cory Gardner (R-CO), Angus
King (I-ME), Lisa Murkowski (R-AK) and Debbie Stabenow (D-MI). House
representatives Mark Amodei (R-NV), Earl Blumenauer (D-OR), Mike Coffman
(R-CO), Paul Gosar (R-AZ), Jerry McNerney (D-CA) and Peter Welch (D-VT)
have also co-sponsored the bill.
“This practical, market-driven solution will unleash private capital
and create jobs,” Coons said. He stated that in addition to broad
support from Republicans and Democrats, the MLP Act has also received
the support of academics, investors, and business leaders.
A summary of the MLP Parity Act can be downloaded here.
http://www.renewableenergyworld.com/articles/2015/06/republicans-and-democrats-back-bill-to-level-the-playing-field-for-renewable-energy.html