A bill that would allow renewable energy projects to be structured as master limited partnerships was reintroduced on Wednesday. Although designed to foster investment in renewable energy projects, commentators see several potential problems with the bill. As noted in the following article, there is considerable concern in the solar industry that the bill would come at the expense of existing tax credits. The concern is that the heralding in of this new financing structure, would mean the elimination of the current tax credits upon which the industry heavily relies. Further, even if current tax benefits were left in place, unless the bill is revised to exempt renewable energy credits from the passive loss and at risk limitation (as is the case for oil and gas industry) it seems unlikely that widespread investment in Master Limited Partnerships would occur. 

Contact David Weisblat or Craig M. Kline for more information.

Read the full article here.