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The Ripon Advance: Moran leads bipartisan effort to unleash private funding for clean energy projects
Oct 27 2017
The Ripon Advance
Investors in clean energy projects would have access to the same tax advantages that investors in oil, coal or natural gas-based projects currently have under legislation that U.S. Sen. Jerry Moran (R-KS) reintroduced on Wednesday.
The Master Limited Partnerships Parity Act would modify the tax code to make clean energy projects eligible for a master limited partnership (MLP), a business structure that is taxed like a partnership but has ownership interests that can be traded like corporate stock.
“The United States has the largest and most efficient capital markets in the world, yet our renewable energy companies rarely have access to those markets,” Moran said. “In order to grow our economy and increase our energy security, sound economic tools like master limited partnerships (MLPs) should be expanded to include additional domestic energy sources.”
Moran reintroduced the bill with bipartisan, bicameral support from U.S. Sen. Chris Coons (D-DE) and U.S. Reps. Ted Poe (R-TX) and Mike Thompson (D-CA). U.S. Sens. Cory Gardner (R-CO) and Susan Collins (R-ME) were among the Senate bill’s cosponsors.
Current statutes limit the use of MLPs to investors in energy projects involving oil, natural gas, coal extraction and pipelines. As a result, renewable energy projects have not been able to realize MLPs’ benefits like faster access to capital and more flexible finance options. Eligible renewable energy resources would include solar, wind, hydrokinetic, energy storage and biomass, among others.
“The MLP Parity Act will allow the renewable energy sector to utilize the MLP structure for project development making it accessible to a broader and deeper investment pool that can drastically reduce the time and cost associated with deploying new energy technologies,” Moran said.
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