Using Renewable Sources Of Energy Essay

3631 Words Sep 19th, 2016 15 Pages
expand qualifying income to include renewable sources of energy, which open up the MLP structure to renewable energy producers and allow them to raise capital through the same structure that oil and gas producers have utilized for years.30 While most of the press regarding the bill has been positive and there has been no outspoken opposition, there remain significant challenges to its passage. There is the possibility that the bill will be held hostage by further tax reform.31 Specifically, some may support the bill only if the other tax credits available to renewable energy are repealed, in effect viewing MLP treatment for renewable energy providers as a subsidy on top of a subsidy.32
Many would agree that promoting renewable energy is a worthwhile endeavor because it would promote a cleaner environment and reduce dependence on imported oil.33 Allowing renewable energy access to the same pubic equity capital as the oil and gas industries would be an important step in promoting renewable energy growth. However, this objective is best achieved by eliminating the ability of the oil and gas industry to utilize the MLP rather than opening it up to the renewable energy sector.

By exploring the broad history and current landscape of the relevant tax code, this paper aims to show that the current use of the MLP within the energy sector is inconsistent with and contravenes the original intent of Congress. As a result, those wishing to promote renewable energy as a preferred…

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