In a move that is set to smooth out America’s transition towards greener sources of energy, US lawmakers have introduced a bipartisan, bicameral bill that would give clean energy projects access to a tax advantage currently available only to fossil fuel projects.
The bill, called Financing Our Energy Future Act, represents a powerful modification of the federal tax code that could boost significant private investments into renewables, by allowing clean energy technology companies to form master limited partnerships (MLP). A master limited partnership is a business structure that combines the funding advantages of corporations and the tax advantages of partnerships. By statute, MLPs are currently only available to investors in energy portfolios for oil, natural gas, coal extraction, and pipeline projects.
Under the proposal, newly eligible energy resources would include biofuels, solar, wind, energy storage, carbon capture technology, and others.