US senators introduce bill to expand incentives to renewables

Jun 8, 2012 - US Senators Chris Coons and Jerry Moran on Thursday introduced legislation to allow renewable energy companies to benefit from a long-time tax incentive currently available only to oil, gas, and coal projects.

The Master Limited Partnerships Parity Act is a change in the federal tax code that would enable investors in renewable energy projects to form master limited partnerships (MLPs), a business structure that combines the funding advantages of corporations and the tax advantages of partnerships.

"The MLP Parity Act helps level the playing field by giving investors in renewables and non-renewables access to the same highly attractive master limited partnership business structure," Coons said. Moran noted that those partnerships had played instrumental role in the growth of the US energy infrastructure.

Only investors in energy portfolios for oil, natural gas, coal extraction, and pipeline projects have been allowed to take advantage of MLPs. Such projects can get cheaper capital and are more liquid compared to traditional financing methods for energy projects, which makes them better able to attract private investment.

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