Sen. Chris Coons, D-Del., has reintroduced the Master Limited Partnerships (MLP) Parity Act with co-sponsors Sens. Jerry Moran, R-Kan.; Debbie Stabenow, D-Mich.; and Lisa Murkowski, R-Alaska.
The bill allows renewable energy companies to organize themselves as MLPs, which are taxed as partnerships but establish ownership shares that can be traded like traditional stock.
According to Coons, the MLP Parity Act is a straightforward modification of the federal tax code that could unleash significant private capital by helping additional energy-generation and renewable fuels companies form master limited partnerships, which combine the funding advantages of corporations and the tax advantages of partnerships.
‘The bipartisan Master Limited Partnerships Parity Act levels the playing field to help clean and renewable energy projects compete fairly with traditional energy projects,’ Coons said. ‘This market-driven solution supports the all-of-the-above energy strategy we need to power our country for generations to come. Our legislation will unleash private capital, create jobs and modernize our tax code.’
According to Coons, the reintroduction of the MLP Parity Act improves and expands an early version of the bill that was introduced last year.
In addition to providing greater clarity on how expansion of the law would be implemented, the bill further widens the scope of projects that qualify for master limited partnership status to include energy-efficient buildings, waste heat-to-power, carbon capture and storage, and biochemicals. The updated version of the bill also provides increased clarity and specificity on how it would be implemented if made law.
