U.S. Representatives Mike Thompson (D-CA), Ted Poe (R-TX), Peter Welch (D-VT) and Chris Gibson (R-NY) today introduced bipartisan legislation in support of an "all of the above" energy approach. The Master Limited Partnerships Parity Act will modify the federal tax code to make it easier and more attractive for private capital to invest in renewable energy.
"We need an all-the-above approach to America's energy future," said Thompson. "This bill levels the playing field by freeing up money for private investment in renewable energy. It will help us create jobs, strengthen our national security, reduce our dependency on foreign oil and move closer to energy independence."
"It is time for the United States to make Middle Eastern turmoil irrelevant to our energy security," said Poe. "In order to do this we must pursue a comprehensive energy strategy that empowers all sources of domestically produced energy. This common-sense bill will do just that. It's time for Washington to make it easier not harder to produce energy in this country"
"Expanding MLP financing to renewable energy projects will be a boost for the renewable industry and for a cleaner energy future. If oil, gas, and coal projects can take advantage of this important tool, there is no reason why renewable projects should be excluded. This is a simple, common sense idea that will drive investment in renewable energy projects for years to come," Welch said.
"This is an important initiative that I'm proud to join with my colleagues to support. This free market approach encourages investment in renewable energy without picking winners and losers, a key to growing our domestic energy supply. By promoting solutions like this legislation, it is my hope that we can drive down energy costs for hardworking families, small businesses and farmers in my district and across our country," said Gibson.
A master limited partnership (MLP) is a business that is taxed as a partnership but whose shares are traded like stock on a market. Because MLPs have access to capital at a lower cost and a more liquid financing, this makes them very attractive to private investment. Currently, only oil, natural gas, coal extraction, and pipeline projects are allowed to qualify for MLPs. This bill would simply amend the federal tax code to allow investment in renewable energy projects in the same way.
Companion legislation, S. 3275, has been introduced in the Senate by Senators Chris Coons (D-DE), Jerry Moran (R-KS), Debbie Stabenow (D-MI) and Lisa Murkowski (R-AK).
This legislation is endorsed by Third Way, American Wind Energy Association (AWEA), Solar Energy Industries Association (SEIA), Biomass Power Association, Biotechnology Industry Organization, Ocean Renewable Energy Coalition, Natural Resources Defense Council (NRDC), Advanced Biofuels Association, Offshore Wind Development Coalition, Advanced Ethanol Council and Environmental Entrepreneurs.