An all-of-the-above energy strategy may mean leveling the tax code. The wind and solar industries may potentially receive favorable tax treatment under a provision of the law that pertains to the fossil fuels or the tax structure could be totally reformed, wiping out all of those breaks in exchange for reduced corporate rates.
An idea getting attention now is giving the renewables sector the right to access“master limited partnerships” -- just like oil, natural gas and coal can now do. Simply, that is a business structure that has limited liability while allowing investors to be taxed at their personal rate on dividends.
Right now, the fossil fuels can set up those partnerships but the green fuels cannot. Such deals are able to attract capital because profits are only taxed once -- when the dividends are distributed, and not at the corporate level. Those investments are liquid and they can be traded, making them a valuable part of building long-term energy infrastructure projects.
Dan Reicher, former director of climate change and energy at Google, raised this issue during an EnergyBiz conference in Washington on Friday. He said that those master limited partnerships could supply “hundreds of millions of dollars” to renewable energy projects by appealing to investors who seek an attractive dividend payment, which could be around 6 percent.
An idea getting attention now is giving the renewables sector the right to access“master limited partnerships” -- just like oil, natural gas and coal can now do. Simply, that is a business structure that has limited liability while allowing investors to be taxed at their personal rate on dividends.
Right now, the fossil fuels can set up those partnerships but the green fuels cannot. Such deals are able to attract capital because profits are only taxed once -- when the dividends are distributed, and not at the corporate level. Those investments are liquid and they can be traded, making them a valuable part of building long-term energy infrastructure projects.
Dan Reicher, former director of climate change and energy at Google, raised this issue during an EnergyBiz conference in Washington on Friday. He said that those master limited partnerships could supply “hundreds of millions of dollars” to renewable energy projects by appealing to investors who seek an attractive dividend payment, which could be around 6 percent.
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