By Huw Evans
As it stands, Master Limited Partnerships (MLPs), a method by which the federal government subsidizes the energy sector are only offered to traditional sources, namely oil, coal and natural gas. However, a bill introduced by Senators Christopher Coons (D-Delaware) and Jerry Moran R-Kansas), labeled the Master Limited Partnerships Parity Act, could change that by making MLPs open to other resources, such as renewable energy. MLPs also enable investors who form them to be exempt from certain IRS tax codes.
“Master limited partnerships have been largely responsible for the tremendous growth in our country’s energy infrastructure, said Sen. Moran. “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.”