US Senate Bill Would Open MLP Business Structure to Renewable Energy

Legislation recently introduced in the US Senate seeks to level the energy playing field between fossil and renewable energy projects. The bill, titled the Master Limited Partnerships Parity Act, would allow investors in renewable energy projects access the corporate structure of master limited partnerships.

The business structure offers tax significant tax benefits to investors, this is now available to investors in fossil energy projects only.

The bipartisan bill was introduced by Senators. Chris Coons, D-Del.; Jerry Moran, R-Kan.; Debbie Stabenow, D-Mich.; and Lisa Murkowski, R-Alaska, on 24 April. The bill was referred to the Senate Committee on Finance

Will the new bill increase US energy sector competitiveness?

Renewable energy companies could get some of the same tax and funding benefits that fossil fuel companies enjoy under a bill now before the U.S. Congress.

The Master Limited Partnerships Parity Act would let renewable companies form businesses that are taxed as a partnership yet can be publicly traded as stock.

This means they could get more investment and pay less tax.