SMACNA is urging members in both Houses of Congress to pass the bipartisan “Master Limited Partnership Parity Act of 2015” (S. 1656 / H.R. 2883) in the House and Senate as soon as possible.
Master limited partnerships (MLPs) have traditionally received tax write-offs when they perform energy-related work involving conventional fuels, such as oil and gas projects. This legislation would expand these tax benefits to investments in clean energy resources such as solar, wind energy, geothermal, and combined heat and power / waste heat to power (CHP/WHP) projects.
Once enacted, the bill is expected to quickly generate billions in additional investment in efficient commercial, industrial, and related industries.
Legislation expands tax breaks to clean energy resources
This legislation would greatly expand financing options for energy saving performance contracting (ESPC), building retrofits, industrial market efficiency projects and combined heat and power / waste heat to power (CHP/WHP) systems on a large scale.
The bill simply expands the definition of “qualified” sources for MLP investments to include ESPCs, clean energy resources and a variety of infrastructure projects.
Energy-efficient building upgrades included
The legislation also allows for a range of substantial building efficiency investments to qualify, including energy-efficient upgrades for buildings, electricity storage, carbon capture and storage, renewable chemicals, industrial retrofits and ESPCs.
If enacted, The MLP Parity Act will balance the federal tax code to specifically allow MLP qualifying energy sources to include a long list of renewable energy sources as well as currently allowed investments.
For the past century, conventional fuels have been able to access low-cost MLP financing to support infrastructure development. This balanced legislation would level the playing field for energy efficient facility renovation; renewable and clean-energy technology, as well as encouraging investment into ESPCs and other needed energy infrastructure projects.
To show your support of the MLP Parity Act, send your senators and representatives a message through SMACNA’s Advocacy Web page, www.smacna.org/advocacy.