Democrats and Republicans plan to push for changes in the tax code to enable renewable energy projects to qualify for favorable tax structures already applicable to pipeline and other energy-related companies. This minor fine-tuning of the code could attract billions of dollars in private sector investment to the renewable energy sector.
Sponsors of the proposed legislation say the idea to allow wind, solar, biofuel, and other renewable energy makers to structure themselves as “master limited partnerships” (MLPs) would allow them to raise money in the stock market while taxing income only at the unit holder level. It’s a way to avoid corporate income taxes.
Democratic Senator Chris Coons of Delaware said energy would gain across the board if the MLP tax structure is extended to renewable energy. Senator Lisa Murkowski, the top Republican on the Senate Energy Committee, has signed on as a cosponsor.
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