This report examines the use and impact of Master Limited Partnerships in the energy sector. Key findings include:

• MLP tax expenditures are part of a broader set of government subsidies that continue to underwrite activities contributing to climate change.
• Fossil fuel MLPs are growing quickly.
• Fossil fuel activities continue to dominate MLPs, both in number of firms and share of total market capitalization.
• Government estimates of tax expenditures from energy-related MLPs are too low.
• MLP tax breaks are among the largest subsidies to fossil fuels.
• Growing share of production cycle for oil, gas, and coal can be organized as a tax-favored MLP.
• Even in well-established market segments, there is a large overhang of fossil fuel assets poised to exit the corporate income tax system through conversion to MLPs.
• Despite a booming oil and gas sector, corporate income tax collections by the U.S Treasury may remain flat or decline.
• Proposed expansion of MLP eligibility to renewables risks disproportionate benefits flowing instead to the fossil fuel sector.
• The MLP loophole should be closed; MLPs should be taxed as conventional corporations, not extended to new uses.