This week, Congressmen Ted Poe (TX-02) and Mike Thompson (CA-01) introduced the House version of the Master Limited Partnerships (MLP) Parity Act. Senator Coons and I introduced identical legislation in the Senate on June 7, 2012. The MLP Parity Act, S. 3275 and H.R. 6437, will allow the renewable energy sector to utilize the advantageous tax structure of MLPs for project development. MLPs in essence combine the business development advantages of a corporation with the tax advantages of a partnership to facilitate easier access to capital markets.
Master limited partnerships have been helpful in the growth in our country's energy infrastructure. In order to grow our economy and increase our energy security, sound economic tools like the MLP should be expanded to include additional domestic energy sources. Allowing emerging technologies in the renewable energy sector to access this structure, American investors can drive development and commercialization as we seek opportunities to make our country more energy independent. This legislation simply builds on a successful model, and I look forward to working with my Senate colleagues along with my Congressional colleagues in the House on policies that will drive innovation, create American jobs, and grow our economy.