Full Title: Master Limited Partnerships and Renewable Energy Producers
Author(s): Nicolas Loris
Publisher(s): The Heritage Foundation
Publication Date: April 1, 2013
Full Text: Download Resource
Description (excerpt):
Lawmakers have introduced legislation that would allow renewable energy producers to form Master Limited Partnerships (MLPs). MLPs are taxed as limited partnerships but publicly traded on the stock market. In the energy sector, the ability to form MLPs is available for mineral extraction, natural gas, oil, pipelines, geothermal, and the transportation and storage of ethanol, biodiesel, and other alternative fuels. Other renewable energy generation and commercial nuclear activities do not qualify.
Congress should allow all energy project investors to form MLPs, but it should also remove economically unjustified tax credits for both conventional and renewable energy sources and technologies while lowering the corporate tax rate to encourage investment. Congress can further spur investment by allowing all companies the ability to expense their full capital costs immediately.