Renewable Energy Tax Break

The Joint Committee on Taxation estimates that the Master Limited Partnership Parity Act (S. 795) (80 DTR G-3, 4/25/13), introduced by Sen. Chris Coons (D-Del.), which would extend to renewable energy sources a tax break currently reserved for the fossil fuel industry, would cost $1.3 billion over 10 years; see the full BNA Tax Report. The bill, co-sponsored by Sens. Jerry Moran (R-Kan.), Debbie Stabenow (D-Mich.) and Lisa Murkowski (R-Alaska), would give the renewable energy industry the right to form master limited partnerships (MLPs), a business structure that is taxed as a partnership but whose ownership interests are traded like corporate stock on a market. Ian Koski, communications director for Sen. Chris Coons (D-Del.), added that reports have predicted the legislation could generate up to $10 billion in private investment in the U.S. renewable energy market immediately.¹