Renewable energy wins Republicans backing oil-gas benefit
April 29, 2013 at 7:03 am by Bloomberg
Solar panels at the NRG Solar and Eurus Energy America Corp.'s 45-megawatt solar farm in Avenal, Calif. (AP Photo/The Sentinel, Apolinar Fonseca, File)
Renewable energy developers may win some tax benefits from Congress that only oil and gas companies can enjoy right now.
A bipartisan bill introduced in the Senate last week would allow renewable and clean energy-related companies to structure their businesses as master limited partnerships — avoiding double taxation while also trading ownership interests on the market, similar to corporate stock, Bloomberg BNA reported.
This treatment — available to oil and gas projects and a limited number of traditional fossil fuel-related industries — gives them access to private capital at a much lower cost than investors in other energy projects, said Senator Chris #$%$, the Delaware Democrat who sponsored the bill.
“That starves a growing and vital part of our domestic energy sector of the capital that it needs to grow,” said #$%$, a member of the Senate Energy and Natural Resources Committee. “That just doesn’t make any sense.”
The Master Limited Partnerships Parity Act would change the tax code and give clean energy parity.
Representative Ted Poe, a Republican from Texas, a co- sponsor of the parallel bill being introduced in the House, supports the effort even with his constituents’ strong ties to the oil and gas industries.
That’s because “the tax code currently hinders the United States’ ability to develop all energy and be more energy- independent,” he said at a press conference last week.
“In my view, it should be a piece of rational tax reform,” #$%$ said. He said the measure could also be passed on its own.
Fairness in Efforts
The bill represents an opportunity for legislators considering tax reform to do more than just simplify the code, putting work on fairness and