Clean-energy projects will gain access to tax incentives currently reserved for fossil-fuel industries if a bipartisan bill makes it through Congress.
Sens. Cory Gardner, R-Colo., and Michael Bennet, D-Colo., collaborated to introduce the Master Limited Partnership Parity Act last week, saying the bill will level the playing field for the renewable-energy industry.
“It is time we update our tax code to reflect our changing economy and commitment to the health and future of our planet,” Bennet said in a statement.
Rather than create new tax structures, the bill extends incentives already available to fossil-fuel industries. The senators both said the change should not disrupt existing businesses, and would only increase the viability of companies not receiving the same breaks as the rest of the energy industry.
Gardner, also in a statement, said the bill will help strengthen America’s energy independence, aid the emerging industry, and create jobs in Colorado and the rest of the country.
A congressional staff member in Bennet’s office, who asked not to be named, said Master Limited Partnerships helped create incentives to build oil and gas pipelines in Colorado, and could do the same for solar, wind and carbon-capture businesses. Unlike previous bills, this bill would also make the tax structure permanent, the staffer said.
Christi Zeller, executive director of the La Plata County Energy Council, said in an email to The Durango Herald that expanding the definitions for the tax credits seemed fair, but cautioned investors to make sure they are well-versed on the details of these partnerships, should they choose to explore renewable opportunities.
“The incentive structure is designed to benefit the manager, sponsor or general partner, so investors need to be educated,” Zeller wrote. “Investors in MLPs may have less protection than investors in corporations.”
The bill is being introduced in tandem with one from the House side being put forward by Republican Ted Poe of Texas.
Samuel Northrop is a reporting intern for The Durango Herald in Washington, D.C., and a student at American University.
