Boosting renewable energy with tax adjustment
A freshman U.S. Senator is hoping that a tax structure adjustment will boost renewable energy development without increasing the financial burden on citizens, according to Reuters.
Senator Chris Coons of Delaware proposed legislation last week to allow wind, solar and biofuel projects to operate under the same master limited partnership (MLP) structure currently available to oil, coal and natural gas projects. This would provide opportunity for these renewable companies to raise money through the stock market and avoid paying corporate income tax.
In the concise, two-page bill, Coons writes, "allowing additional forms of energy development to access this market tool, we can go beyond political rhetoric and start delivering an all-of-the-above energy strategy."
He added that "this is especially important in the case of renewable-energy generation, where it is harder for investors to see a quick return as compared to fossil fuel-based energy generation for which much of the processing and transportation infrastructure was built decades ago."
There are around 100 MLPs operating in the U.S., with a value of more than $350 billion, according to Reuters.
Although the bill has won bipartisan support, it is unlikely to be voted on before November's presidential election.
-see this article